RTA inter-operable Platform for enhancing investors’ experience in Mutual Fund transactions / service requests
Summary
SEBI mandates Mutual Fund RTAs to implement a standardized, interoperable platform for enhanced investor experience. The circular requires AMCs, RTAs, and Depositories to collaborate on developing this common industry-wide system with real-time data exchange capabilities. Stakeholders must ensure the platform is fully operational by December 31, 2021, while adhering to specified cyber security and business continuity guidelines.
Text
RTAs shall implement standardized practices, system interoperability amongst themselves to jointly develop a common industry wide platform... AMCs and Depositories shall facilitate the RTAs for development of the proposed platform.
The aforesaid platform shall... enable a user-friendly interface for investors for execution of mutual fund transactions... initiation and tracking of service requests... In this regard, AMCs, RTAs and Depositories shall take necessary measures to provide data via APIs on a real time basis... Additionally, RTAs and Depositories shall also share their respective data feeds between themselves...
The platform may also over time, provide services to the distributors, registered investment advisors, AMCs, Stock Exchange platforms and digital platforms... in consultation with SEBI.
AMCs, RTAs and Depositories shall review and agree to harmonize the processes across the industry to provide a single-window, integrated, simplified investment and service experience for the investors.
AMCs, RTAs, and Depositories shall adopt the data definitions and standards as provided / recommended by SEBI for data exchange amongst various participants.
The Platform should be scalable with robust cyber security protocols and supported through an API-based architecture. In this regard, the platform shall adopt the Cyber Security and Cyber Resilience framework specified by SEBI from time to time to “MIIs”... and “Qualified RTAs” (QRTAs).
The RTAs are jointly and severally responsible for compliance with all the applicable regulations including system audit and cyber security audit. Further, RTAs shall ensure that the platform complies with the guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) specified by SEBI...
All the stakeholders are advised to collaborate and work together towards the development and implementation of the proposed investor-friendly platform.
AMCs and Depositories shall facilitate and RTAs shall make the aforesaid platform operational in a phased manner (starting with non-financial transactions) and shall be fully operational by December 31, 2021.
AMCs, RTAs, Depositories, AMFI and key stakeholders are advised to create awareness about this initiative amongst the investors.
Any RTA providing its services to Mutual Fund(s), subsequent to issuance of this circular, shall follow the guidelines specified in this circular or amendments thereto as may be intimated by SEBI from time to time.
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996...
Source: SecMarx — RTA inter-operable Platform for enhancing investors’ experience in Mutual Fund transactions / service requests. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.