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The two registrar and transfer agents (RTAs) — CAMS and KFintech — have forged a new standalone entity to operate the MF Central platform. The joint venture will explore monetisation opportunities for the mutual fund (MF) platform while also expanding its services.
"The setting up of a standalone entity will help operationalise and fulfil the objective of investor convenience and staying fully aligned with the regulatory intent of Sebi, while exploring monetisation opportunities to further enhance the platform’s unique offerings for the future," said Anuj Kumar, managing director, CAMS.
CAMS and KFintech had collaborated to create MF Central in 2021 as per the Securities and Exchange Board of India's (Sebi) directive. The regulator had called for a common MF transaction and services platform.
"MF Central is the first and only digital transformational initiative of its kind globally, bringing together the entire MF industry to enhance ease of business for all stakeholders. The new entity, led by an independent board and management, will aim to create the country’s best super app ecosystem for MFs with tech-first hyperscale and highly secure solutions," said Sreekanth Nadella, managing director and chief executive officer, KFintech.
Apart from financial transactions, the platform allows investors to make non-financial transactions across asset management companies (AMCs), such as downloading account statements and updating personal details in folios.
"Having witnessed a phenomenal response and success with over 2.5 million users, MF Central is now being formalised into a standalone entity with equal ownership by both RTAs," the RTAs said in a release.
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