CAMS and KFintech Launch Joint Venture for MFCentral to Streamline Mutual Fund Services

On November 11, 2024, Computer Age Management Services Limited (CAMS), India’s leading registrar and transfer agent for mutual funds, and KFin Technologies Limited (KFintech), a major provider of global investor and issuer solutions, announced a joint venture focused on enhancing MFCentral. This collaboration will integrate technology, sales, and marketing efforts to improve the mutual fund investment experience and expand the range of intermediary services.

Background of MFCentral

In line with SEBI’s 2021 initiative, CAMS and KFintech developed MFCentral as a unified platform to simplify mutual fund transactions for retail investors. Launched in phases, MFCentral first introduced non-financial transaction services in September 2021, followed by a mobile app and a full range of financial transactions in 2023. With over 2.5 million users, MFCentral is now becoming a stand-alone entity equally owned by both companies.

APIs and Innovations for Enhanced Mutual Fund Services

MFCentral has created various APIs that support mutual fund distributors and Registered Investment Advisors (RIAs), including options for non-financial and financial transactions, as well as information-only APIs such as Capital Gains and CAS at the distributor level. 

These transaction APIs, the first of their kind, allow for transaction acceptance with full validation, supporting innovative services like loans against mutual funds. Additionally, MFCentral has introduced an industry-first API for a standardised pledging process across asset management companies (AMCs), aiding banks, NBFCs, and loan service providers.

About KFin Technologies Limited (KFintech)

KFin Technologies Limited (KFintech) is a technology-driven financial services platform offering a wide range of solutions for the capital markets ecosystem. It provides services for asset managers and corporate issuers across various asset classes in India, along with comprehensive investor solutions. 

About CAMS Limited

CAMS is a financial infrastructure provider for the BFSI sector, holding a ~68% market share in mutual fund asset management services. It supports ten of India’s top fifteen mutual funds and extends its services to alternative investments and portfolio management, supporting over 450 mandates across 190 funds. Subsidiary CAMSKRA provides KYC services, while CAMSPay delivers payment solutions for the BFSI sector and EdTechs. 

On November 12, 2024, CAMS share price opened at ₹4,746.00 and touched the day high of ₹4,818.00 at 09:32 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.