MF investors to get single statement for all schemes

 Securities & Exchange Board of India (Sebi) is contemplating to cut down paperwork and provide common account statement for all mutual fund investors with the help of registrar and transfer agencts (RTAs). To start with, Sebi has asked four RTAs such as Computer Age Management Services (CAMS), Deutsche Investor Services, Franklin Templeton and Karvy Mutual Fund Services to combine investor data together and provide consolidated statement of account for all investments in mutual funds.  This apparently will reduce paperwork and cost for asset management companies (AMCs) too. 

The four RTAs have already begun work on compiling investor data, sources said. The plan is to set up separate platform so that the industry can deliver one statement across investments in various mutual funds, they said adding: “We have already initiated work on conceptualisation and scope of services.  As huge economies will flow in, it will reduce the efforts of investors and distributors.”  

Efforts are two pronged.  One is those who have demat account (equity investors) can get their MF units in demat form for which consolidated information is available with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limtied (CDSL).  Another is on clubbing RTA data to provide consolidated statement.  

Though resources are available for aggregating data, there will be no sharing of investor information between NSDL and RTAs. Any data aggregation will be based on PAN among other things, a source said.  If investors are holding MF units in demat form with NSDL or CSDL and also some units through RTAs, they will get two separate consolidated statements – one from NSDL and other consolidated statement from four RTAs.  

If they (investors) are also holding stocks, then same demat statement will reflect their stock and fund investments together.  If investors information are with RTAs, then they will get single account statement across RTAs.  Plans are to eventually club this data across all RTAs – as against current 4 RTAs – and send single consolidated statement to MF investors.  The RTAs are awaiting Sebi’s nod for implementing this new system, which is expected to happen in the next 3-6 months.  

Sebi Executive Director K N Vaidyanathan recently shared this plan with the participants stating: “The third area where regulator is focussed was for those who come directly through asset management companies or one of the investors services like Karvy or CAMS. We want to make sure that if investors so choose they should get single view. 
We will put in place a mechanism to that effect.”