The regulator had asked AMCs to de-duplicate folios in its 22 August,
SEBI has written a letter to AMCs asking them
about the status on de-duplication of folios, confirm industry officials. It
has asked fund houses as to “what have they done so far to de-duplicate folios.”
In its 22 August 2011 circular, SEBI had asked
fund houses to de-duplicate folios or investor accounts in six months. A few
AMCs say that they will intimate SEBI that consolidation of folios is happening
at the R&T agent level.
The basic idea behind de-duplicating folios
is to find out how many new investors are entering the industry. PAN and
address are the two main filters through which R&T agents identify new
“Earlier in the absence of KYC, investors
used to open a new folio every time they invested because they didn’t remember
their folio numbers. Now with KYC coming in, many retail investors and
companies invest through existing folios to avoid documentation. Earlier, investors
were holding three to four folios across AMCs. Now it has come down. This is
one of the reasons why folios are declining,” says an operations head of a
private sector fund house. Rough estimates suggest that an investor holds at
least two-three folios now across AMCs.
R&T agents CAMS and Karvy, which together
handle a majority of AMCs, are de-duplicating folios based on the AMCs serviced
by them. Industry officials say that SEBI wants to de-duplicate folios between
both the R&T agents, which could be a mammoth task as AMCs might not wish
to share investor data.
CDSL Ventures Limited (CVL) possesses the
centralised database of all mutual fund investors. As per AMFI data, there are
currently 3.76 crore folios as on March 2012.