RTAs wait for SEBI clarification on consolidated account statements  

August 17, 2010

RTAs are ironing out the final contours to facilitate physical consolidated account statements to mutual fund investors, which will streamline operations and reduce costs for AMCs

If registrar and transfer agents (RTAs) have their way, mutual fund investors will soon start getting a single account statement for all their investments. However, they will have to wait at least until September 2010 for the final outcome.
Currently, Computer Age Management Services (CAMS), Franklin Templeton and Karvy Mutual Fund Services together provide a consolidated view of investments through their 'Mailback' service.

(See: https://www.karvymfs.com/platformservice/). This service is currently available via the online platform. If all RTAs unify their data, investors will be able to get a consolidated physical copy too. This will be a win-win situation for investors as well as asset management companies (AMCs).

"Karvy and CAMS submitted the proposal together and in the first note requested time till September 2010. We are in the process of consulting other RTAs to join this initiative. We are waiting for the Securities and Exchange Board of India (SEBI) to revert on a few clarifications," said a source familiar with the development.

Moneylife had first reported about this development. Read here: (http://www.moneylife.in/article/81/6638.html).
The four RTAs - CAMS, Karvy, Deutsche Investor Services and Franklin Templeton together manage 43 fund houses. Deutsche Investor Services manages JP Morgan Mutual Fund, Deutsche Mutual Fund and Quantum Mutual Fund. CAMS covers 17 fund houses; and the rest of the 23 fund houses are managed by Karvy Mutual Services. Franklin Templeton Mutual Fund has its own in-house team to service its investors.

SEBI recently expressed its interest to facilitate a single account statement to investors in an email communication to chief executive officers (CEOs) of fund houses.

It is believed that the RTAs are seeking some clarity on the dispatch of accounts during new fund offers (NFOs). SEBI in its 15th March circular had mandated fund houses to dispatch account statements, units and refund investor money within five days from the date of closure of NFOs.  — Ravi Samalad