MF Central (mfcentral.com), and transaction platform Started its first phase today for mutual fund investors. It provides investors with a dashboard of all their mutual fund investments and accepts service requests such as changes in email, phone number and enrollment. The platform has been jointly launched by Computer Age Management Services (CAMS) and KFintech or KFin Technologies Pvt Ltd, two Registrars and Transfer Agents (RTAs) of the mutual fund industry. Shrikant Nadella, CEO, Cafintech talks Mint Neil Borate about the new platform. Edited excerpt:
When will MF Central induct new mutual fund investors?
New investor registration will take place in Phase 3. In Step 2, we will launch a mobile app. We will also have a Uniform Account Statement (CAS) for service requests, complaints etc. In Phase 3, where we will cover financial transactions and new investors. One of the many features we will launch will be a zero base folio. Imagine a world where you don’t want to invest at all, but you want to be a mutual fund-ready investor. On this platform you will be able to implement it whenever you decide, with the ability to invest in mutual funds.
Why is there no call center number in MF Central?
At present we do not have a call center. We are starting a chat. Mutual fund investors will be allowed to use screen sharing and requests will be handled online. We’re doing it digitally instead of going back to the analog world
What about showing the holding period in the mutual fund statement?
Yes, it will be part of the next release. No need to wait for step 2 for this. For example consolidation of capital gains statements.
Will there be a separate login for distributors? For example to deliver service requests to your customers?
The architecture required for distributor login is complex with Application Reference Numbers (ARNs) and sub-ARNs and associated data movement. There is a separate distributor login on the card. However, the whole purpose of creating this platform is to enable investors to self-service requests. I don’t think there is any process in this platform which takes more than 30 seconds. Take an analogy. With net banking, I don’t have to go to any bank branch or call the branch manager for anything. I expect investors not to share usernames and passwords with distributors. Investors should not harass distributors for such basic work.
You will provide the API to the fintech platform. Will it accuse?
Yes. The platform needs to be maintained. Significant investment has been made in this. However, at the moment it is difficult to say what these allegations will be. We will make the API available in the third phase of the platform itself and only then will we have a better understanding of the cost.
You are going to enable transmission on the platform. Will it be end to end online?
Note that there are AMC-specific rules on transmission. Transmission puts RTA in a difficult place – on the one hand, we want to make it fast and convenient but there is potential for fraud. We are making the transmission process available pre-login and post-login. This is because the legal heir of the deceased cannot be a mutual fund investor. The process itself is a series of workflows in which digitized and scanned copies of documents are being transferred to the AMC involved. It will be 90% digital. Only if the documents do not substantiate the claim of transmission will there be a physical aspect.
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