Amfi may drop plan to launch MF platform

Association of Mutual Funds in India (Amfi), the industry body of fund houses, today hinted that it may drop the plan to launch its own mutual funds transaction platform, as others have already launched similar facilities.

"We are re-examining the proposal as many parties, including BSE, NSE and Cams and Karvy have launched their platforms. We have to see whether there is a space for one more platform," Amfi Chairman A P Kurian told reporters here.

The NSE was the first to launch its mutual funds transaction platform in association with UTI MF, which was followed by the BSE and others. Initially, Amfi had planned to make its platform operational by March this year.

NSE Managing Director & CEO Ravi Narain today said, the exchange has received a modest response from investors to its mutual funds transaction platform but expects the response to improve in the period ahead.

Asked about the banks parking their money in the financial instruments issued by MF companies, Kurian said banks tend to invest in instruments, which, they feel are profitable.

Reserve Bank is understood to have asked banks to bring down their investments in mutual funds, as the regulator feel that this would affect the bank credit flow to the needy sectors.