AMFI gets SEBI nod to launch trading platform

The MF Utility—an online service—will facilitate efficient and cost effective transaction processing

August 08, 2012 11:31 IST | India Infoline News Service
Market regulator SEBI (Securities and Exchange Board of India) has cleared the proposal for the launch of AMFI’s (Association of Mutual Funds in India) mutual fund transaction routing platform. The platform will provide investors with a common account number (CAN) so that investors can invest across schemes and fund houses using this number.

The MF utility platform will have a single cheque payment system and common account statement for all the schemes that investors have invested in across asset management companies (AMCs). Currently, investors need to submit separate cheques for making investments in each scheme.

The MF utility platform is expected to be operational in the first half of 2013. The platform will work as a single touch for everything related to mutual fund investment. 
According to AMFI, the MF Utility—an online service—will facilitate efficient and cost effective transaction processing. This facility will help customers, distributors and financial advisors to transact mutual fund schemes across all AMCs, at one place.

Using this platform, investors will have the ease of sending scanned copies of the required application for investment with a promise to deliver the originals within the next few days. There will be no change in the role played by distributors or registrars and transfer agents. The convenience of online submission of documents would encourage higher rural penetration among distributors and IFA (independent financial advisors).

Investors will be provided with a login ID and password to transact. Distributors will also be given a login ID and password so that they can directly put in their transaction. For an investor to transact in any scheme there will be a common account number (CAN) for the entire mutual fund industry. All information will be captured in a CAN as a master data like the nominations made by the investor, PAN details, to name a few.

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