New Delhi: In a significant move to deepen financial inclusion and broaden participation in capital markets, the Department of Posts (DoP) and the Bombay Stock Exchange (BSE) signed a Memorandum of Understanding (MoU) on Thursday to extend mutual fund distribution services across the country. The agreement aligns with the Union Budget 2025–26 emphasis on leveraging India Post’s extensive outreach to stimulate economic activity, particularly in rural and semi-urban regions.
India Post to Distribute Mutual Funds via BSE StAR MF
Under the MoU, India Post will function as a mutual fund distributor using the BSE StAR MF platform, India’s largest mutual fund distribution system. The initiative will enable citizens, especially in underserved areas, to access investment products through their local post offices.
Selected postal employees will be trained and certified to act as mutual fund distributors, allowing them to provide investor assistance and facilitate transactions at the grassroots level.
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Training, Certification, and Compliance Framework
As part of the collaboration, BSE will support the training and onboarding of eligible postal employees by issuing Employee Unique Identification Numbers (EUIN) to authorised personnel. This step will ensure transparency, accountability, and regulatory compliance in mutual fund distribution.
BSE will also assist postal officials and agents in obtaining the mandatory National Institute of Securities Markets (NISM) Mutual Fund Distributor certification. Certified employees will guide customers on informed investment decisions, execute transactions, and offer ongoing investor support.
MoU Details and Signatories
The agreement was signed by Ms. Manisha Bansal Badal, General Manager (CCS & RB), Department of Posts, and Sundararaman Ramamurthy, Managing Director and CEO, BSE, in the presence of senior officials from both organisations.
The MoU will be effective for a period of three years, from 12 December 2025 to 11 December 2028, with a provision for renewal based on mutual consent.
Strengthening Financial Inclusion and Investor Awareness
By combining India Post’s unmatched last-mile presence with the technological strength of the BSE StAR MF platform, the partnership aims to democratise access to mutual fund investments. It is expected to significantly enhance mutual fund penetration in Tier-2, Tier-3, and rural areas, promote informed investment behaviour, and reinforce India Post’s role as a key provider of financial services.
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