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Mutual fund investors to get single statement across all investments

SEBI has asked the four RTAs like CAMS, KARVY, Franklin Templeton and Deutsche Investor Services to club investor data together and provide a consolidated statement of account for all investments in mutual funds

Have you invested in five different schemes of different fund houses and are tired of receiving five different statements of accounts? Then you will be in for some relief. Market regulator Securities and Exchange Board of India (SEBI) is mulling to cut down the paperwork and provide a common account statement for all mutual fund investors with the help of four registrar and transfer agents (RTAs). This move will reduce the paperwork and cost for AMCs.  

Deutsche Investor Services Pvt Ltd, Computer Age Management Services (CAMS), Franklin Templeton and Karvy Mutual Fund Services are the four RTAs who will work on compiling investor data. 

“There is a plan to set up a separate platform so that the industry can deliver one statement across investments in various mutual funds. We have done some work on conceptualisation, scope of services, etc. Huge economies will flow in. It will reduce the efforts of investors and distributors,” said a source in the know of the development.

“There are two efforts that are being undertaken. One is that those who have a demat account (equity investors) can get their MF units in demat form for which the consolidated information is available with the National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd (CDSL). There is another effort going on where RTA data is being clubbed to provide a consolidated statement. There are resources available for aggregating data. There will be no sharing of investor information between NSDL and RTAs. The data aggregation will be based on PAN and things like that,” said another source close to the development.

For instance, if an investor is holding MF units in demat form with NSDL or CDSL and also some units through RTAs, he will get two separate consolidated statements. That is, one from NSDL and the second consolidated statement from the four RTAs. If he is also holding stocks, then the same demat statement will reflect his stock and fund investments together. If an investor’s information is with RTAs then he will get a single account statement across the RTAs.

CAMS and KARVY currently provide an online service on their website for investors to track their transaction status, account information and to see a consolidated view of account by providing an email ID. Investors are required to create a user account on the CAMS or KARVY website. There are plans to club this data across RTAs and send a single consolidated statement to MF investors.

The RTAs are awaiting SEBI’s nod for implementing this new system. According to sources, it is expected to be implemented by the next three to six months. KN Vaidyanathan, executive director, SEBI, had recently shared this plan in a recent mutual fund CII summit. “The third area where the regulator is working on is for those who come directly through the asset management companies (AMCs) or one of the investor services centre providers like KARVY or CAMS. We want to make sure that if the investor so chooses he should get a single view. We will put in place a mechanism where the investor will get a single view.”

“The proposal has been made. The regulator is very positive about it,” said a source close to the development. “This is good for the investors and industry at large. It’s late but it’s good that SEBI is thinking about implementing this. It will benefit all stakeholders,” said an official from a fund house.

User

COMMENTS

Tarique Anwer

6 years ago

Pl send the all statements of my Mutul fund.

m ramachandran

6 years ago

Excellent and Fantastic Decision. This will reduce the costs of stationery to a greater extent. I wish that SEBI should go ahead with compulsory dematerialisation of Mutual Fund Units like the ones done for Stocks. This will increase the market size of Mutual Funds in long run and reduce the costs to AMC.HATS OFF TO SEBI FOR TAKING INNOVATIVE DECISIONS

seetharamank

6 years ago

good move by sebi

Satej

6 years ago

Noe we heard that Sundaram MF is going to setup inhouse registrar for all its funds, how investor get the consolidated a/c statement ? Because for non financial transaction also they are paying more charges to CAMS &Karvy.Till today they are not providing the data for 2 funds which was shifted to inhouse from KArvy Registrar.Why SEBI is not asking to all RTA's to cut down their charges for AMC's data management?
Can SEBI help in this matter ?

jatin gandhi

6 years ago

in fact the consolidated (Active)statements recd are of no use, as it doesn't give complete details as to purchase, transactions. For SIPs details of SIP additions are also not available- think if all four give one statement what will happen ?

R N DAVE

6 years ago

A very good step forward. This was required at the begining. This steps should move faster and implemented on urgent basis. While data compilling the name and address factor should also be considered where there is no panno.

Anil Patel

6 years ago

This is a nice move towards an easy and effiecient servicing for the mutual fund unit holders.Further SEBI should issue the direction to show the performance of the each and particular scheme ,in which units have been held for a particular time by unit holder, in the same cosolidate account statement

krish

6 years ago

WE HAVE BEEN SUGGESTING THIS TO THE MOST INDIFFERENT KARVY & CAMS (IT IS A CURSE FOR MILLIONS OF INVESTORS THAT THEY ARE INTO BUSINESS OF HANDLING MILLIONS OF INVESTORS' ACCOUNTS - MUTUAL FUNDS & SHARES - ONLY TO THEIR GOOD LUCK AS EVERYBODY IN THIS COUNTRY HAS A 'ME TOO' ATTITUDE - EVEN COMPANIES - IN APPOINTING THEM AS RSA WANTING TO PROVIDE (DIS)SERVICE!).

EARLIER CAMS WAS TOLERABLE. NOW, IT HAS JOINED KARVY IN DETERIORATED, INDIFFERENT, DON'T CARE A HOOT ATTITUDE EXCEPT A SUGAR COATED FACADE!

THERE ARE SO MANY OTHER VITAL INFORMATION THAT CAN COME OUT OF MF STATEMENTS TO THE RELIEF OF INVESTORS, BUT WHO WOULD BELL THE CAT?! AMFI IS PROTECTING THE 'INTEREST' OF THE GLOATED AMCs!

A VERY IMPORTANT THING THAT NEEDS TO BE DONE IS TO STOP PRINTING PRIVATE & CONFIDENTIAL DATA OF INVESTORS LIKE NOMINEE NAME(S), BANK ACCOUNT NOS./NAMES/ADDRESSES, PAN NO., E-MAIL & PHONE NOS. ON THE STATEMENT ITSELF!

IN SHARES/STOCKS RELATED STATEMENTS, AND ALL COMMUNICATIONS FROM VARIOUS COMPANIES, INCLUDING ANNUAL REPORTS, VOTING/PROXY FORMS, EVEN DP & CLIENT ID ARE PRINTED ON THE ENVELOPE OR VISIBLE FROM THE WINDOW OF THE ENVELOPES!!! THIS IS SUPPOSED TO BE ILLEGAL & A VERY SEVERELY SERIOUS BREACH OF PRIVACY OF MILLIONS OF INVESTORS. HAS ANYBODY, INCLUDING SEBI, RBI, GOVT. OF INDIA BOTHERD ABOUT IT?!?!?

THESE ARE THE DATA TO BE STORED IN THE AMCs/DP'S BACK OFFICES & NOT FOR REVEALING TO THE WHOLE WORLD - RIGHT FROM DISPATCH CLERKS, COURIERS/POSTMEN/APARTMENT SUPERVISORS/WATCHMEN, NEIGHBOURS, OTHERS IN THE FAMILY ITSELF!!!

IT IS HIGH TIME MONEYLIFE & OTHERS DEAL WITH EXTREMELY NERVE-SHATTERING ISSUES LIKE THESE, ON BEHALF OF MILLIONS OF INVESTORS ACROSS INDIA/ABROAD.



REPLY

M RAMACHANDRAN

In Reply to krish 6 years ago

YOU ARE ABSOLUTELY CORRECT.BOTH RTA'S ARE TOTALLY INEFFECTIVE. ITS HIGH TIME THAT SEBI GOES IN WITH COMPULSORY DEMATERIALISATION OF MUTUAL FUND UNITS TO FACILITATE FASTER TRANSACTION AND ALSO CUT DOWN COSTS ON RTA SERVICING. THIS AMOUNT WILL DEFINITELY BE USED FOR FURTHER INVESTMENT

Bharat Bhushan

6 years ago

Two separate consolidated statements ? Will the registrar not provide statements of units in demat form. I think this information is also available with registrar. Why can't demat a/c holders having accounts in both CDSL and NSDL can get one consolidated statement ?

REPLY

M RAMACHANDRAN

In Reply to Bharat Bhushan 6 years ago

STATEMENTS IN DEMAT FORM IS THE ABSOLUTE NEED OF THE HOUR. I WISH THAT MR.BHAVE CONTINUES TO BE AT THE HELM OF SEBI FOR MORE TIME AND COMES OUT WITH INNOVATIVE IDEAS FOR THE BENEFITS OF AN INNOCENT INVESTOR AT LARGE. HATS OFF TO MR.BHAVE AND TEAM

K sriram

6 years ago

The Cams give singal statement to the investor the same probelam
The parsantage of all the fund. Which he invested.

Roopsingh

6 years ago

SEBI is showing its ''inteligentia''which is not better then a layman-bcos these issues have been several times raised to them to create a common application form and comprehensive statement across all registrars-but fact is that-if they do things as per suggestions of others-then who will call them ''intelligent''-
this is typical quality of indian beurocarcy-so they wont do things easily-and even wont be ready to give online trading platform which is pending since last 2 years

D B DESAI

6 years ago

This is welcome measure but this should have been far earlier. Many things have happened in between which have affected the small IFAs who service the retail clients. I also agree with the suggestion of Mr. Ramesh Bhat K that there should be a common format for applying for purchase of units. Initially you may print your forms differently but the matter should be same and this should eventually culminate into common application form.

Ramesh Bhat K

6 years ago

I agree it is good step by SEBI. But let them first give the investor common application form which is common and agreeable to all Mutual Fund Investment. SEBI says it want to simplify everything, If they are really Investor friendly they must do the above first.

AMGUPTA

6 years ago

THE STEPS TAKEN BY SABI DURING LAST ONE YEAR SEEMS GOOD ON FACE BUT IN REALITY THESE STEPS ARE GOING TO KILL THE MUTUAL FUND INDUSTRY.

sanjay naik

6 years ago

this will definately reduce paper work and follow up efforts with RTA laso that will be benificial for invstor to track their portfolio on single page.

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