Securities and Exchange Board of India has issued a circular[1] regarding the RTA inter-operable platform for enhancing investors’ Experience in mutual fund transaction or service requests on July 26th, 2021. Many decisions have been taken After various restorations with shareholders including AMFI, depositories, and the registrar and Transfer Agents of Mutual Funds, to Make it more convenient for investors to avail service or transact while investing in mutual funds.
Standardized practices and system interoperability will be implemented amongst themselves by RTA to develop a common industry white platform that will deliver Elevated, harmonized, and integrated experience to investors. RTA play will be facilitated by Depositories and asset management companies for the proposed platform. This platform will enable a user-friendly interface for run investors for the execution of mutual funds Such as switch, redemption, purchase, etc. And tracking of queries and complaints, access investment related reports such as mutual fund holding in standard statement account and DEMAT account Obama Details of unclaimed redemptions and dividends, capital gain or loss report, transactions reports, initiation and tracking of service request such as a change in bank account details, contact number, email ID, etc. Access to all mutual funds will be in an integrated manner. Depositories, RTAs, and AMCs Need to provide data through APIs on a real-time basis to the proposed platforms. Data feeds will be shared between RTS and depositories to generate investment-related reports.
The platform may in the future provide service to Digital platforms commerce Stock Exchange platform, AMCs, Registered investment advisors, and distributors for transacting in mutual funds. The process providing A single-window, integrated, simplified investment and service experience Will be reviewed by depositories, RTAs, and AMCs. Data definition and standard provided by Securities and Exchange Board of India for data exchange among the various participants Is to be adopted.
The platform will have API based architecture and will adopt a cyber-resilience framework and cybersecurity as specified by the Securities and Exchange Board of India to market infrastructure institutions such as clearing corporations, depositories, stock exchanges, and qualified RTAs. ABI can be exposed to other industries as well but will need the approval of the concerned mutual fund on mutually agreed terms.
With compliance is like system audit and cybersecurity audit RTA will be jointly and severally responsible. The stakeholders need to collaborate and the depositories, RTAs, and AMCs Need to make this platform operational in a phased manner and completely operational by 31st December 2021.
[1] Circular No.: SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/604
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