Amfi drops plan for transaction platform

Written by fe Bureau | Kolkata | Updated: Jan 31 2010, 05:27am hrs
The Association of Mutual Funds in India (Amfi) has shelved its plan for launching its own mutual funds transaction platform, according to AP Kurian, chairman of the industry body of fund houses.

For the last two years we were thinking of launching some platform. We have worked on it but now we have found others have already launched it and that has created the open market and now we feel that there is no need to launch a separate platform, said Kurian,who was speaking on the sidelines of a seminar on mutual funds organised by Indian Chamber of Commerce.

We have decided not to launch it now. We have conceptualised and catalysed it and the market has picked it up, he added.

While the NSE decided first to launch its mutual funds transaction platform jointly with UTI MF, the BSE, ICICI Direct, CAMS Karvy and Bajaj Capital Group followed suit.Kurian said the mutual fund industry witnessed a good growth till December 2009 of the current fiscal against the same period last quarter. The industry grew by almost 80%. This growth was based on debt funds.

Kurian said AMFI has requested finance minister Pranab Mukherjee to make dividend of equity schemes of Funds more attractive to investors.