CAMS and KFintech Announce Joint Venture to Propel MF Central’s Growth and Digital Transformation
Varahi media.com online news , Hyderabad, 11 November 2024: Computer Age Management Services Limited (CAMS), India’s largest registrar and transfer agent of
Varahi media.com online news , Hyderabad, 11 November 2024: Computer Age Management Services Limited (CAMS), India’s largest registrar and transfer agent of mutual funds, and KFin Technologies Limited (KFintech), a leading provider of global investor and issuer solutions, have announced the formation of a joint venture for MF Central. This joint venture will focus on the development, technology, sales, and marketing aspects of MF Central, aiming to enhance the mutual fund investment process for investors and expand the suite of intermediary services.
MF Central, a unified platform conceptualized by CAMS and KFintech under SEBI’s initiative in April 2021, was created to improve the ease of doing business for retail investors. The platform serves as a centralized hub for investors, allowing them to transact in mutual funds across various fund houses from a single access point, significantly enhancing the range of services available to investors online.
In its first phase, MF Central launched non-financial transactions in September 2021, followed by the mobile app and full range of financial transactions in 2023. With over 2.5 million users and tremendous success, MF Central is now being formalized into a stand-alone entity with equal ownership shared by both RTAs.
APIs for Consolidated Accounts Statement (CAS) have received significant interest from mutual fund distributors and registered investment advisors (RIAs), and are being used extensively by digital intermediaries. Over 50 million personalized statements have been delivered, offering a unified view of investor holdings, enabling intermediaries to offer customized products.
MF Central has also developed APIs for non-financial and financial transactions, and provides tools such as capital gains and distributor-level CAS. These transactional APIs are the first to enable transaction acceptance with full validation, catering to the evolving needs of mutual fund services like Loan Against Mutual Funds. Moreover, MF Central has introduced a seamless API journey for banks, NBFCs, and loan service providers, enabling a standardized pledging process across all Asset Management Companies (AMCs).
Anuj Kumar, Managing Director of CAMS, highlighted the significance of this milestone, stating that the stand-alone entity will further improve investor convenience, align with SEBI’s regulatory intent, and create new monetization opportunities. He emphasized that the platform is committed to fostering financial inclusion and innovation.
Sreekanth Nadella, MD and CEO of KFintech, spoke about the platform’s global impact, noting that MF Central is the first initiative of its kind to bring together the entire mutual fund industry for enhancing ease of doing business. He further emphasized that the creation of a separate entity will drive the industry’s goals of financial inclusion and digital transformation, while aiming to create India’s best super app ecosystem for the mutual fund industry.
The new entity will hold 50% of the share capital from each RTA and manage business development and commercial arrangements with distributors and AMCs. All intellectual property rights will remain jointly held by CAMS and KFintech.
About Author
