AMFI has constituted a group to discuss the possibility of selling stake in MF Utility to BSE. The trade body has recently communicated this to fund houses through the minutes of the recently held AMFI board meeting. Cafemutual has a copy of the minutes of the meeting.
The four-member group consists of Sundeep Sikka, Executive Director and CEO, Reliance Nippon MF, A Balasubramnian, CEO, Birla SunLife MF, Vikaas M Sachdeva, CEO, Edelweiss MF and C. VR. Rajendran CEO, AMFI.
The group is expected to conduct in-depth assessment of BSE’s proposal to buy stake in MF Utility.
As per the minutes, AMFI Chairman Leo Puri has said,” It would be worthwhile to examine the proposal received from BSE. Seeking a mutually beneficial alliance between MF Utility and strategic parties like BSE Star MF platform with shared governance can enhance the value and business volume for MF Utility. The merger can help bring down cost per transaction for participating AMCs.”
Currently, the participating AMCs have to cough up Rs.5 lakh every year. Due to this flat fee structure, the cost per transaction depends on the volume of transaction and hence varies every month. Higher the volume, lower the transaction cost.
Some fund houses have not registered with MF Utility due to high costs. The CEO of a fund house said that his fund house cannot afford using MF Utility at the moment as they may have to bear close to Rs. 1,000 per transaction.
