Following the Interim Budget announcement in 2014 to create one record for all financial assets of every individual, MF investors have started getting a consolidated account statement (CAS) reflecting their holding across MFs and shares from March 2015.
Investors are expected to get a complete CAS across all financial holdings if there is consensus among all regulators like PFRDA, IRDAI and SEBI.
The statements, reflecting MFs and shares, have been generated by CDSL with the help of PAN of first account holder in mutual funds.
If there is any transaction in any of the demat accounts of the investor or in any mutual fund, then CAS will be sent on monthly basis. In case there is no transaction in MF and demat accounts then CAS will be sent to investors on a half-yearly basis. CDSL will send CAS in physical form if investors do not wish to receive CAS through email.
If investors do not wish to get CAS, they can opt out of this facility. SEBI has said that depositories should inform investors in their statements from January 2015 about the facility of CAS and give them information on how to opt out of the facility if they do not wish to avail it.
Following the CAS sent to all MF investors, some MF distributors are worried that brokers will poach their clients. In its circular dated November 12, 2014, SEBI has told depositories and MF RTAs to ensure data integrity and confidentiality. “The depositories shall utilize the shared data only for the purpose of providing CAS and shall not share the same with their depository participants. Where depositories are required to share such information with unregulated entities like third party printers, the depositories shall enter into necessary data confidentiality agreements with them,” states the SEBI circular.
Also read: All you want to know about consolidated account statement
