The platform is waiting SEBI’s nod for a formal launch.
Industry’s much-awaited order routing platform MF Utility has started onboarding advisors.
The platform is currently at the testing stage and is awaiting approval from SEBI.
“It gives us immense pleasure to inform you that the mutual fund industry's joint initiative MF Utility (MFU) is close to its launch. The system is undergoing multiple levels of testing to ensure smooth functioning on launch. We have sought to be regulated by SEBI and are awaiting some clearances from SEBI. We invite you to onboard on to MFU which is a pioneering concept offered free of cost to you,” reads an email sent by MF Utility to distributors.
The platform will provide investors a Common Account Number (CAN) which can be used to invest across all AMCs. This common number will enable distributors and their clients to submit multiple requests across schemes of various fund houses using a single application.
With the availability of a CAN, static details like bank mandate, nomination, email id, etc., can be maintained at one place. Thus, any change in these details can be registered at one place, i.e. with MFU and the same shall be automatically reflected in all AMCs where the CAN is registered, instead of submitting multiple requests to multiple AMCs for each such change, states the email communication sent to distributors.
Chennai based software firm Polaris has developed the platform. The MF Utility will provide order routing and payment mechanisms with connectivity to RTAs, AMCs, stock exchanges, DPs, banks and centralized KYC repository.
The software is expected to have the following in built features:
- Web based front end for distributors which will give one-view of their assets across industry, their investors' investments across AMCs, submission of transactions either individually or in bulk, scanning of documents, and placing of service requests for distributors
- Web based front end for Investors to permit one-view of investments across the industry, submission of transactions and placing of service requests
- Web based front end for RTAs & AMCs for information exchange, data uploads, MIS access, data maintenance, etc.
