The Board of Directors at Computer Age Management Services (CAMS) has approved a Joint Venture Agreement (JVA) with KFin Technologies Limited to establish a joint venture company (JVC), named MF Central. This new entity will focus on the development, maintenance, and operation of an investment management platform designed to serve as an ecosystem for the mutual fund industry.
Key Highlights of the Joint Venture:
- Ownership Structure: The joint venture will be equally owned by CAMS and KFin, each holding a 50% stake in the new entity, MF Central.
- Director Nomination: Both companies will nominate two directors each to the board of the JVC, with an additional joint nomination of one director. CAMS and KFin have been granted veto rights over specific decisions related to the company’s operations.
- Capital Infusion: The initial investment will include ₹1 lakh for incorporation and an additional ₹26.99 crore on the closing date as per the terms of the agreement. Shares in the JVC will be issued at a nominal value of ₹10 per share.
- Objective: The primary purpose of MF Central is to create an integrated investment management platform that will support mutual fund operations, providing a comprehensive digital ecosystem for the industry.
- Regulatory Compliance: The transaction and the joint venture details comply with SEBI’s LODR regulations, ensuring transparency and adherence to regulatory standards.
This strategic collaboration is expected to enhance digital capabilities within the mutual fund industry, facilitating smoother transactions and services for investors and asset managers
