CAMS launches Insta Purchase

Computer Age Management Services Limited (CAMS), India's largest registrar and transfer agent of mutual funds (a SEBI regulated entity) has announced its launch of Insta Purchase to enhance the service experience of investors in liquid and overnight scheme categories.

Over the years the Mutual Fund industry has vastly reduced the transaction processing timelines, keeping pace with the secondary market settlement cycles and faster money movement from banks and payment aggregators. Mutual fund unit allotment follows a complex trade settlement process with a NAV cycle which is skewed towards the end of the day. This results in settlement (and confirmation with statement of accounts) taking almost a day from the time an investor places a purchase order and the money leaves his bank account. Investors, especially new entrants, sometimes view this as a delay and begin to believe that service standards could be better.

Explaining the background to launching Insta purchase, Mr. Anuj Kumar, Managing Director - CAMS, said "We recognized that the urge for instant gratification amongst consumers continues to go up, given the formats of execution in many new products including ride hailing, airline ticket booking and stock trading. It is important now for the MF industry to offer an experience which, despite the multiple complexities involved, is able to deliver to consumers similar real time experience and superior fulfilment of their service requirements."

In this brand-new initiative Insta Purchase, CAMS serviced funds will now be able to deliver confirmation of all those trades where purchase of a scheme is based on historical (previous day) NAV. This will apply to liquid and overnight schemes of all mutual funds where the trade settlement confirmation will be delivered to the investors within hours of the origination of trade and remittance of the money. While this will happen within the ambit of the current rules of MF which require compulsory sighting of credit as a pre-condition to allot a trade, investors will not have to make any additional steps during the purchase process to get instant allotment.

Mr. Anuj Kumar, added, "CAMS, a fore-runner in the area of making process execution more and more sophisticated in the mutual fund arena, has built advanced algorithms and mechanisms to settle trades and recognize payments in quick time despite the issues involved. Insta Purchase is yet another path breaking development leveraging our technology to elevate the service experience for investors in the liquid and overnight scheme categories. They will now be able to receive their trade confirmation within hours rather than waiting until next morning."

The innovative process will be a significant leap forward in building augmented means for subscribing to MF schemes and will serve the industry well.

Shares of Computer Age Management Services Limited was last trading in BSE at Rs. 2902.20 as compared to the previous close of Rs. 2762.25. The total number of shares traded during the day was 13356 in over 2055 trades.

The stock hit an intraday high of Rs. 2946.85 and intraday low of 2765.00. The net turnover during the day was Rs. 38728568.00.

Source : Equity Bulls

Keywords

ComputerAgeManagementServices INE596I01012 CAMS InstaPurchase