AMFI is in the process of forming a company which would operate
on a no-profit no-loss basis.
The work on developing MF Utility is likely to begin soon once the contract for the project is awarded by AMFI. A leading IT firm and a Chennai based software company are said to be in the race for bagging the contract from AMFI.
As
a part of the initial seed capital, AMCs are likely to contribute Rs 5 lakh
each, which works out to Rs 2.20 crore from 44 AMCs. Users of MF Utility may
have to pay a fee for every transaction which would help to fund the ongoing
cost of the platform.
Meanwhile,
AMFI is in the process of forming a company, which is proposed to be run on a
no profit no loss basis. MF Utility is being developed to help industry
expand its geographical footprints, bring down costs and increase the
industry’s efficiency.
The
MF Utility will be AMC neutral and won't provide any investment
advice. The portal will connect investors, RTAs, AMCs, stock exchanges,
DPs, banks and the centralized KYC repository.
The portal would provide one-view of investments across the industry. Distributors will get industry MIS reports and can get to see one-view of their assets across industry. The portal will allow distributors to submit transactions either individually or in bulk.
An
investor would be allotted a unique account number which could be used to
transact across industry. Investors can buy multiple schemes through a single
payment system.
As per the request for expression of interest (EOI) floated by AMFI, the vendor needs to develop the platform in 90 days.
