Paperless MF transaction to make its mark soon
Indian fund houses are coming together to set up an electronic platform, exclusively for trading mutual fund units, the head of the committee set up by Amfi for this purpose told ET.
By ET Bureau |
MUMBAI: This could take some time in coming, but will certainly revolutionise the way in which mutual fund units are transacted. Indian fund houses are coming together to set up an electronic platform, exclusively for trading mutual fund units, the head of the committee set up by Amfi for this purpose told ET. This could be on the lines of Indonext, a platform on the BSE specifically for small- and mid-cap stocks.
To enable better penetration of mutual funds in the hinterland and making the process of investing more convenient, they are also planning to use wireless technology, once regulations are conducive.���It���s been a long time since funds have been looking for ease, efficiency and effectiveness while selling funds,��� said Jaideep Bhattacharya, chief marketing officer, and a member on the board of Amfi. ���An electronic platform is one of the easiest ways to bring down the cost of reaching out to investors across the country,��� he added.Amfi has been discussing the platform with vendors in India and abroad and is looking at getting the software up and running within the next two to three years.
���We are looking to launch a platform, enabling investors to reach fund houses better,��� Amfi chairman AP Kurien had told the audience at CII seminar on mutual funds last week.
Fund houses feel that the current process where investors have to go via a distributor (or indeed directly) is extremely cumbersome. For instance, if an investor in Chandigarh wants to invest in Templeton funds through a registrar based in Chennai, the forms actually moves from Chandigarh to Chennai. The platform is aimed at reducing such unnecessary paperwork to a bare minimum. ���Transactions conducted through the platform will also be more secure and safe for the investor concerned,��� says Mr Bhattacharya. The committee plans to make use of the recommendations of the SMILE committee that was headed by PJ Nayak, an exhaustive study on easing the IPO application process.
���We are hoping that the move will help leapfrog the industry into the next orbit,��� he predicted. Amfi also plans to make the use of wireless mobile technology feasible, so that a person situated in a remote corner of the country can access the platform. RBI had recently said mobile phone owners in the future will be allowed to transfer funds from their accounts to other mobile phone owners across networks and service providers. The Amfi committee is hoping that this facility can be eventually tapped while transacting in MFs.
To enable better penetration of mutual funds in the hinterland and making the process of investing more convenient, they are also planning to use wireless technology, once regulations are conducive.���It���s been a long time since funds have been looking for ease, efficiency and effectiveness while selling funds,��� said Jaideep Bhattacharya, chief marketing officer, and a member on the board of Amfi. ���An electronic platform is one of the easiest ways to bring down the cost of reaching out to investors across the country,��� he added.Amfi has been discussing the platform with vendors in India and abroad and is looking at getting the software up and running within the next two to three years.
���We are looking to launch a platform, enabling investors to reach fund houses better,��� Amfi chairman AP Kurien had told the audience at CII seminar on mutual funds last week.
Fund houses feel that the current process where investors have to go via a distributor (or indeed directly) is extremely cumbersome. For instance, if an investor in Chandigarh wants to invest in Templeton funds through a registrar based in Chennai, the forms actually moves from Chandigarh to Chennai. The platform is aimed at reducing such unnecessary paperwork to a bare minimum. ���Transactions conducted through the platform will also be more secure and safe for the investor concerned,��� says Mr Bhattacharya. The committee plans to make use of the recommendations of the SMILE committee that was headed by PJ Nayak, an exhaustive study on easing the IPO application process.
���We are hoping that the move will help leapfrog the industry into the next orbit,��� he predicted. Amfi also plans to make the use of wireless mobile technology feasible, so that a person situated in a remote corner of the country can access the platform. RBI had recently said mobile phone owners in the future will be allowed to transfer funds from their accounts to other mobile phone owners across networks and service providers. The Amfi committee is hoping that this facility can be eventually tapped while transacting in MFs.
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