AMFI has awarded the contract for developing MF Utility platform to Chennai based Polaris Financial Technology. Sources close to development reveal that the platform is expected to be ready by February-March 2014.
Industry officials say that the distributors and investors will be provided free access to this platform. It will enable investors to transact across the entire mutual fund industry with single login ID. AMCs are still working out a methodology of funding this project. Broadly, it is expected to be based on AUM and number of transaction, said sources.
Sources also informed that AMFI is in process of hiring a CEO for MF Utility platform. So far, it has appointed a Head of Process and a Head of Technology.
“The MF Utility platform will benefit all segments of investors, distributors and brokers by reducing cost and risk and offering better service and transparency. This web enabled front-end application, functioning as an ‘Order Routing’ tool, will also benefit all AMCs, the Registrar and Transfer Agents (RTAs), investor brokerage companies and regulators,” a Polaris press release said.
K Srinivasan, EVP, Indian Subcontinent, Middle East and Africa (IMEA) Markets, Polaris Financial Technology Limited said, “It is noteworthy that we have been chosen to partner AMFI on this initiative that is of significant national importance and represents a key part of our National Financial Infrastructure. The MF Utility application will be implemented in nine months and will serve as a testament to Polaris’ solution development capability.”
The maintenance, overall development and support contract is for 5 years which could be further extended based on mutual confirmation.
