Introduction of New Mutual Fund Service System (MFSS)

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

MUTUAL FUND SERVICE SYSTEM

CIRCULAR

Circular no: NSE/MFSS/003/2009                

Download No: NSE/CMTR/13533

Date: November 24, 2009

Dear Members,

Sub: Introduction of New Mutual Fund Service System (MFSS)

Securities Exchange Board of India (SEBI) vide circular SEBI/IMD/CIR No. 11/ 183204/2009 dated November 13, 2009 ( Annexure 6 ) issued guidelines for facilitating transaction in Mutual Fund schemes through the Stock Exchange infrastructure.

In view of the above the National Stock Exchange of India Ltd. (NSEIL) proposes to introduce new Mutual Fund Service System (New MFSS). In order to participate in the New MFSS, trading members will be required to comply with the documentation requirements as specified in this Circular.

All trading members of the Exchange who are registered with Association of Mutual Funds of India (AMFI) as Mutual Fund Advisors and who have signed up with the specific Asset Management Company (AMC) of a Mutual Fund are eligible to participate in the New MFSS. For this purpose, trading members shall have to register with NSEIL as Participants by submitting an Undertaking as per the format specified in Annexure 2.

Participants shall abide by the operating guidelines and terms & conditions of this circular and the circulars issued from time to time with regard to New MFSS by NSEIL and such other requirements as prescribed by SEBI, Association of Mutual Funds in India (AMFI) or any other regulatory authority for market intermediaries in the business of mutual fund units.

Further, the Participants shall ensure that the investors desirous of participating in the New MFSS register with the Participant as a client have to submit the letter as per the format specified in Annexure to this circular. All clients shall undertake to abide by the operating guidelines and terms & conditions of this circular and the circulars issued from time to time by NSEIL with regards to New MFSS.

The existing Mutual Fund Scheme (which was introduced vide circular No. NSE/MFS/0002/2000 dated December 14, 2000) will be discontinued and substituted with the New MFSS.

The new Mutual Fund Service System shall commence from November 30, 2009.

List of Annexures enclosed with the circular is given below:-

For any clarifications, members are advised to contact the following officials:

Mr. Sunil Gawde, Mr. Binoy Yohanan, Ms. Deepti Nakhate, Ms. Supriya Bhan and Mr. Manjunath Gadiyar on 26598448 and 26598327.

For National Stock Exchange of India

Suprabhat Lala

Assistant Vice President – Capital Markets