Last updated: 10 October 2026 · By Yashna Bhuwania (ARN-325085)
Quick answer: A mutual fund distributor (MFD) can transact in four ways: directly with each AMC, on BSE StAR MF, on NSE NMF II, or on MF Utilities (MFU). The exchanges and MFU give one login across many AMCs and cost little or nothing. Distribution platforms wrap these rails and add client apps and reports.
| Route | Run by | One login for many AMCs? | Cost to an MFD (Oct 2026) | Client ID |
|---|---|---|---|---|
| AMC empanelment | Each AMC | No, one per AMC | No fee stated by AMFI | AMC folio |
| BSE StAR MF | BSE | Yes | No MFD membership fee; ₹2,000 + GST processing fee listed | UCC (client code) |
| NSE NMF II | NSE | Yes | Membership fee discontinued "till further notice" (June 2024) | IIN |
| MF Utilities | MF Utilities India Pvt Ltd | Yes | Free for regulated intermediaries | CAN |
Why does the transaction route matter for an MFD?
The route decides how much admin sits behind every SIP you sell. It changes:
- Speed: how fast a new client is set up and makes a first purchase.
- AMC coverage: whether you need one login or forty.
- Mandates and SIPs: whether one bank mandate can debit SIPs across fund houses.
- Records: whether you get one view of a client across AMCs.
No route changes your commission. AMCs pay trail to your ARN as per their brokerage structure. See how MFD commission works.
Do you still need to empanel with every AMC?
Yes. AMFI's Ready Reckoner for MFDs says distributors must empanel with each AMC before doing business with it. If you don't, the transaction is processed under the Direct Plan, and you earn nothing on it. So empanelment is the base layer, not an alternative. The exchanges and MFU are order-routing rails on top of it.
What empanelment involves:
- A valid ARN, and an EUIN for each person who advises.
- The AMC's empanelment form, often filed online on its distributor portal, with your ARN, PAN, bank details and KYC.
- A distributor login for that AMC's portal, where you can transact and see brokerage.
The catch: there are 40+ AMCs. Using each AMC's own portal means 40+ logins, folios and brokerage statements. Fine for a part-timer using three fund houses; it does not scale.
What is BSE StAR MF and who can use it?
BSE StAR MF is BSE's order-routing system for mutual fund units, launched on 4 December 2009. One login places purchases, redemptions, switches and SIPs across the AMCs on the platform.
Eligibility. BSE's MFD page says only AMFI-registered distributors permitted by the exchange can use it, so you need a valid ARN. This follows SEBI circular CIR/MRD/DSA/32/2013 (4 October 2013), which allowed MFDs to use stock exchange infrastructure. An individual ARN holder can apply directly as an MFD member; stockbrokers join through a separate, costlier route.
Fees.
| Applicant type | What BSE lists |
|---|---|
| MFD (ARN holder) | MFD fee discontinued from 1 June 2015. Processing fee ₹2,000 + GST |
| Stockbroker (MF segment) | ₹1,00,000 refundable deposit, ₹50,000 + GST admission, ₹75,000 + GST annual, ₹1,000 + GST processing |
So BSE StAR MF is close to free for an MFD. Confirm the current processing fee with BSE when you apply.
Money and units. You never touch either. Pay-in goes to the clearing corporation (ICCL); payouts go straight to the client's bank. Orders run 9 am to 3 pm on working days.
SIPs and mandates. SIPs are registered as "XSIP" and debited through NACH or eNACH mandates registered on the platform. BSE now runs a newer version, StAR MF 2.0, which software vendors have integrated with.
Good: one client code (UCC) across AMCs, demat and non-demat. Watch out: exchange cut-offs apply, and each new client needs UCC, FATCA and mandate set-up.
What is NSE NMF II and how is it different?
NSE NMF II is NSE's web-based mutual fund platform linking NSE, NSE Clearing, AMCs, RTAs and distributors. It handles subscriptions, redemptions, switches, SIPs, STPs and SWPs.
Eligibility. NSE's operating guidelines say MFDs with a valid ARN can apply for membership, limited to mutual fund transactions. Individuals, firms, companies and banks can apply. Employees who transact need their own ARN and EUIN, registered by the MFD.
Fees. NSE's one-time ₹2,000 + tax membership fee was discontinued "till further notice" by its circular of 3 June 2024. So NMF II is free to join today.
Client ID. Each investor gets an IIN (Investor Identification Number), unique to PAN and mode of holding. If a client already has an IIN through another distributor, they share it with you instead of registering again.
SIPs and mandates. The investor signs a debit mandate in favour of NSE Clearing, registered with the bank with a UMRN from NPCI. The guidelines ask for the mandate at least 30 days before the first SIP debit, and cancellations at least 10 days before the next due date. Check current timelines with NSE.
Good: free, one IIN per investor that carries across distributors. Watch out: mandates need lead time before the first SIP.
What is MF Utilities (MFU) and what is a CAN?
MF Utilities India Pvt Ltd runs MFU, a shared transaction platform launched by the AMCs under the aegis of AMFI. It is not a stock exchange.
The CAN. A Common Account Number is a folio at the industry level. Once a client has a CAN, their existing folios are mapped to it: one view of all holdings, and investment in any participating AMC without opening a new folio there. One CAN transaction form can carry up to five transactions across AMCs.
Eligibility and fees. Distributors and RIAs can sign up; MFU's homepage says the platform is free for regulated intermediaries.
SIPs and mandates. MFU supports SIPs, STPs and SWPs, and its homepage announces eMandate and UPI Autopay options. Confirm current mandate types before relying on one. MFU also has a goMF distributor app on Android and iOS.
Good: free, and one CAN gives a clean view across AMCs. Watch out: each new client needs a CAN first, an extra onboarding step.
How do the four routes compare side by side?
| AMC empanelment | BSE StAR MF | NSE NMF II | MFU | |
|---|---|---|---|---|
| Needs ARN | Yes | Yes | Yes | Yes (or RIA) |
| Logins | One per AMC | One | One | One |
| AMC coverage | One AMC each | Multiple; check current list | Multiple; check current list | Participating AMCs |
| Client identifier | Folio per AMC | UCC | IIN | CAN |
| SIP mandate | Per AMC | NACH / eNACH via the platform | NPCI mandate in favour of NSE Clearing | Mandate across AMCs |
| Cost to MFD (Oct 2026) | No fee stated by AMFI | ₹2,000 + GST processing fee listed | Free | Free |
| Still need AMC empanelment? | It is the empanelment | Yes | Yes | Yes |
| Best for | MFDs using 2–3 AMCs | MFDs whose software runs on BSE | MFDs wanting a free exchange rail | One folio view per client |
Can you use more than one? Yes. You can register on BSE, NSE and MFU together, and a second rail can act as a backup. The cost is reconciliation: client records end up split across UCCs, IINs and CANs unless your software pulls them together.
What do distribution platforms add on top of these rails?
Many MFDs never log into BSE, NSE or MFU directly. They use software or a platform that wraps these rails. There are two types.
1. Back-office software (you keep your own ARN and rails). You register on the exchange yourself and plug the software in. Per each vendor's own site (Oct 2026):
| Software | Rails it connects to |
|---|---|
| Investwell Mint | BSE, NSE and MFU |
| REDVision Wealth Elite | BSE StAR MF, NSE NMF II, MFU |
| IFANOW | BSE StAR MF and NSE NMF |
These give you client reports, white-label apps and order entry. The trade-off: they are software only. You still do your own AMC empanelments, exchange registrations and compliance, with no training on building an AUM book and no MFD community.
2. Distribution platforms (you work under the platform's ARN). You join as a sub-distributor. The platform holds the exchange memberships and AMC empanelments; you get a dashboard and a client app.
What you gain: one onboarding instead of 40+ empanelments, no exchange paperwork, a client app on day one. What you give up:
- Commission share. The platform keeps part of the trail. Most large platforms use tiered sharing that is not published and varies by partner AUM.
- Ownership. Clients are mapped to the platform's ARN; moving them to your own ARN later takes a formal process.
- Attention. Large platforms spread support across thousands of partners, so it is less personalised.
We compared eight options in best mutual fund software for distributors.
Which route should a new MFD start with?
Whatever gets your first ten clients invested cleanly. In our view:
- Just starting, or under ₹5 Cr AUM: a platform saves you the empanelment and exchange setup work.
- Growing with your own team: register on one exchange rail and MFU, empanel with the AMCs you recommend, and add back-office software.
- Already large: run your own ARN on multiple rails, and use platforms only for products you can't access directly.
New to the business? Read how to become a mutual fund distributor.
Where Dhan Saarthi fits: Dhan Saarthi is a distribution platform. Transactions run on BSE StAR MF 2.0, you get one onboarding instead of separate empanelment with 40+ AMCs, and you keep 90% of trail with no upfront or seat fees. Book a demo.
Sources
- AMFI: Ready Reckoner for MFDs (10 Feb 2025): empanelment rule
- BSE: Mutual Fund Distributors on StAR MF: eligibility and fees
- BSE: StAR MF overview and membership fees
- BSE StAR MF: XSIP, NACH and eNACH
- NSE Circular 47/2024 (3 Jun 2024): discontinuation of MFD membership fees
- NSE NMF II Operating Guidelines
- MF Utilities: fees, CAN, apps
- Vendor websites for Investwell, REDVision Wealth Elite and IFANOW (checked 7 Oct 2026)
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Distribution services are offered through Khazana Fintech Pvt. Ltd. (AMFI ARN – 325085). Fees and platform details as of October 2026; check official pages before you register.
