Description

Update on the Non-Financial Transactions (NFT) facility on BSE StAR MF Platform, detailing the NOM_STRUCTURE field specifications for nominee updation and related processes.

Summary

BSE has issued an update regarding the Non-Financial Transactions (NFT) facility on the BSE StAR MF Platform. The circular provides detailed technical specifications for the NOM_STRUCTURE file format, which is used for processing nominee-related transactions including nominee updation, opting out of nomination, and updating/changing nominee details across different RTAs (Kfin and CAMS).

Key Points

  • The NOM_STRUCTURE contains 34 fields with specific mandatory/optional requirements
  • Supports three document types: Wet Signature (W), eSign (E), and 2FA (O)
  • Two-Factor Authentication (2FA) can be conducted via Mobile (M), Email (E), or Both (B)
  • Different NCT types for Kfin (NCTCF01 for opting out, NCTCF02 for updates) and CAMS (NOM)
  • Detailed specifications for nominee information including name, relation, percentage allocation, PAN, and minor flag
  • Conditional mandatory fields based on document type, mode of holding, and 2FA authentication mode
  • Includes provisions for joint holders (J1, J2) with separate contact detail requirements
  • Declaration flags required when contact details match between holders
  • Broker code mandatory for ARN holders, RIA code mandatory for RIAs

Technical Specifications

Core Fields (1-7)

  • Member Code and UCC (Client Code) are mandatory
  • NCT_TYPE specifies transaction type with different codes for Kfin and CAMS
  • AMC_CODE, FOLIO_NO, and Primary PAN are mandatory
  • DOC_TYPE indicates signature/authentication method

2FA Requirements (Field 8-17)

  • 2FA authentication mode mandatory for digital NCTs in 2FA mode
  • Email and mobile number requirements vary based on 2FA mode selection
  • Conditional requirements for joint holders based on mode of holding

Contact Detail Declarations (Field 18-23)

  • Declaration flags mandatory if contact details match between holders
  • Five possible values: SE (Self), SP (Spouse), DC (Dependent Children), DS (Dependent Siblings), DP (Dependent Parents)

Intermediary Codes (Field 24-27)

  • Broker Code mandatory for ARN holders
  • EUIN optional
  • Sub Broker Code optional
  • RIA Code mandatory for RIAs

Nominee Details (Field 28-34)

  • Nomination opt-out flag (Y/N)
  • Nominee name, relation, and percentage allocation
  • PAN mandatory for new folio creation with specific ID type conditions
  • Support for different ID types: PAN (10 digits), Aadhaar (last 4 digits), Driving License (max 20 digits), Passport (max 9 characters)
  • Minor flag and date of birth for minor nominees

Compliance Requirements

  • Members must ensure all mandatory fields are populated based on transaction type
  • For 2FA transactions, appropriate email/mobile details must be provided based on authentication mode
  • Declaration flags must be accurately filled when contact details are shared between holders
  • ARN holders must include broker code; RIAs must include RIA code
  • For nominee updation, complete nominee details including relation and percentage must be provided
  • PAN/ID proof requirements must be met for new folio creation

Important Dates

No specific implementation or effective dates mentioned in the circular.

Impact Assessment

Operational Impact

  • Members and intermediaries using BSE StAR MF platform must ensure their systems comply with the updated field structure
  • Enhanced data capture requirements for 2FA transactions may require system modifications
  • Improved nominee management capabilities with detailed specification of fields

Market Participants Affected

  • BSE StAR MF Platform members
  • ARN holders and RIAs
  • RTAs (Kfin and CAMS)
  • Mutual fund investors conducting non-financial transactions

Process Enhancement

  • Standardized structure for nominee-related transactions across different RTAs
  • Clear conditional logic for mandatory fields reduces processing errors
  • Support for multiple authentication modes provides flexibility for digital transactions

Impact Justification

Technical update affecting mutual fund intermediaries and members using BSE StAR MF platform for non-financial transactions, particularly nominee updation processes. Important for operational compliance but not market-moving.