CAMS, KFin Tech form joint venture to operate MF Central platform
Computer Age Management Services Limited (CAMS) and KFin Technologies Limited announced today the formation of a 50:50 joint venture company to operate ‘MF Central,’ their mutual fund investment management platform. The agreement was signed on November 8, 2024.
The shares of Computer Age Management Services Limited (CAMS) were trading at ₹4,690.85 up by ₹53.35 or 1.15 per cent on the NSE today at 1.20 pm.
CAMS will invest up to ₹13.50 crore in the new venture, which will be incorporated under names like ‘MF Central Private Limited’ or ‘MF Central (India) Private Limited,’ subject to regulatory approval. The joint venture company will acquire, develop, and maintain the MF Central platform, which serves as an execution-only platform for mutual fund transactions.
The initiative stems from a July 2021 SEBI directive requiring registrars and transfer agents (RTAs) to develop an interoperable platform for enhanced investor experience in mutual fund transactions. Both CAMS and KFin Tech are SEBI-registered RTAs who jointly developed MF Central in response to this requirement.
The new entity will require registration as a category-1 execution-only platform with the Association of Mutual Funds in India. Each partner will nominate two directors to the board, with one jointly nominated director. The transaction, expected to complete within four months, is subject to customary closing conditions.
The companies will initially invest ₹1 lakh at incorporation, followed by an additional ₹26.99 crore on the closing date.