The purpose is to extend reach
The purpose is to extend reach
Mumbai: A.P. Kurian, chairman of Association of Mutual Funds in India, or Amfi, an industry body, spoke on the new NSE mutual fund trading platform. Edited excerpts:
Is this a good move?
Will the existing distribution community be adversely affected?
When MF distribution started many years ago, there were only independent, individual distributors. Then came banks, followed by distribution companies. Still, the independent distributor survived because they didn’t supplant one another. The size of the country is such that everyone can survive. It’s like one restaurant is there in a locality and then some years later, another restaurant comes in.
There’s a feeling that the new stock exchange platform will cannibalize the Amfi platform and that the latter has now taken a back seat. True?
The stock exchange platform caters to registered stock brokers. But there are still around 100,000 Amfi registration number (ARN) holders who need to be serviced. The stock exchange becomes a trading platform for the broker community, while the Amfi platform becomes a trading platform for the ARN distributors. These are two segments and there is adequate space for both the platforms. India is a vast country with a large population that can be tapped. I am confident that the Amfi platform will see the light of the day.
Would BSE and NSE now be a part of the Amfi platform given their new equation?
That situation is being discussed and looked into now. We will have to wait and see what happens.
When will the Amfi platform see the light of the day?
Wait and watch.
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