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Execution Only Platform

News: Existing Mutual Fund ‘Execution-Only Platforms’ (EOPs) were ordered by the Securities and Exchange Board of India (SEBI) to register within three months.

The execution only platform (EOP) is a digital or online platform that makes it easier for people to subscribe to, redeem from, and switch between direct mutual fund plans and schemes.

In order to invest in securities like stocks, bonds, money market instruments, and other assets, mutual funds aggregate the funds from shareholders.

Professional money managers run mutual funds, allocating the assets and attempting to generate capital gains or income for the fund’s investors.

A defined framework for technology/digital platforms to offer execution-only services in direct mutual fund scheme plans was not yet available.

No organisation would be permitted to operate as an EOP without first seeking registration from SEBI or the Association of Mutual Funds in India (AMFI), according to the new SEBI guidelines.