Weekly Roundup – August 27

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CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

Decisions on changes in US Fed rate to wait until December; Yellen’s comments indicate possibilities of a hike.

GSecs

Iran open to work together with OPEC and help recovery of the oil market, provided other member countries recognize its privileges to recover its lost market share.

OPEC HQ

Another prominent entity joins the fundraising surge in China as its Agricultural Bank prepares to sell Tier-II securities worth $12 Billion over a three years’ period in a bid to fortify its Capital buffers.

chinese yuan

RBI to pitch for liberalization that allows for liquidity without weakening of the bond market.

RBI

Commercial banks can now issue ‘Masala bonds’ in overseas markets to meet Infrastructure, housing and capital requirements.

RBI to mandate banks to set higher risk weights for loans issued to larger firms, from 2018.

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B15 Mutual fund asset base found to have grown by 19% on a year-on-year basis, as on March 2016, according to data from SEBI. Progress ascribed to a combination of factors that include SEBI’s stance in promoting financial participation from beyond the top cities in India.

rubber stamp with inscription INSURANCE

Insurance industry records new business growth by 15%, setting the tone for expectations of higher profits.

IRDA raises bars for investment in Equity by commending for a dividend track record of 10% for the last two years in place of the previous prescription for 4%.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

The B15 Growth Story

MF

A Task borne to endorse Inclusion

A 2012 AMFI report confirmed that 85% of inflows into Mutual funds had been exclusively sourced from the top 15 cities in Country. Subsequently, in a robust attempt to attract participation from regions that still remained under-penetrated in terms of Mutual funds, SEBI introduced several measures to encourage investments from the B15 cities, in the same year.

SEBI initiatives

This included initiatives that mandated Fund houses to set aside two basis points of their daily net assets for investor education and awareness programmes and the launch of the district adoption programme designed to drive financial inclusion pertaining to mutual funds.

The regulating house had also introduced an exclusive incentive programme for garnering assets from beyond the country’s top 15 cities, allowing Mutual funds to charge an extra 30 basis points (a basis point is a hundredth of a percentage point) of the Total Expense Ratio (TER) for garnering assets from B15 cities. In effect, many Fund houses had enforced revised commission and incentive structures for distributors in the B15 cities, to bring in more investors into Mutual funds.

The Aftermath

Four years later, it would appear that SEBI’s attempts have finally paid off; financial inclusion and awareness in India has risen to a substantial extent, with a steady rise in participation from investors based out of B15 cities.

According to data from SEBI on investor accounts with 42 fund houses, the overall number of folios have grown from ~4.76 crore mark at the end of last fiscal year to 4.92 crore, as of July 2016. In the April-July 2016 period alone, net inflows of over INR 1.92 lakh crore has been recorded with Mutual fund schemes. As of July 2016, AuM of Equity Mutual funds has reached a new high of INR 15.2 lakh crore, with markedly increased contribution from the B15 cities.

The B15 investment Scene: A CAMS perspective

An integral part of the Indian Finance sector and a trusted service partner to 8 out of the top 10 AMCs in India, CAMS retained its position as the market leader with a substantial market share of 62.18%, as recorded in the quarter ended June.

The following inferences on B15 MF investments are based on data provided by CAMS Data Bureau Services – covering 92% of Mutual Fund Industry

B15 assets were observed to have grown by 30% on a year-on-year basis from June 2015 levels. As of June 2016, investments from B15 cities were estimated to have contributed up to 13% of the mutual fund industry’s total AuM.

Gross inflows recorded for the quarter ended June 2016 was around 37 lakh crores of Rupees, indicating a growth of 12% from its value in the previous quarter. The Gross Sales in B15 locations has increased by 22% as compared to the quarter ended March 2016.

B15 assets were assessed to have a balanced mix of equity and non-equity based assets, with 60% of their assets falling into equity schemes.

The way ahead

More investors from the small towns, now sensitized to the importance and benefits of Wealth Management, are seeking constructive avenues to deploy their retirement money, plan for children’s education and the like. With growing awareness on Mutual funds and how the schemes offer products to meet the diverse needs of the meticulously careful Indian savers, more investments are expected to enter the Mutual fund space from B15 cities.

On a wider perspective, it is heartening to note that foreign investors are returning to the India investment scene, lured by its relatively stable market amidst impending US Fed tightening and other volatilities in the aftermath of Brexit. If anything, the ambiguities will provide for more buying opportunities. On the whole, the future seems to full of possibilities for AMCs as well as investors in the country.

About CAMS

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

CAMS CIO speaks on achieving unbroken Sustainability through BCP

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Significance of BCP in dealing with the inevitable

 The Harvard Business School identifies Business Continuity as one of the Five basics of Corporate Sustainability, where focus remains upon the management of operational, regulatory and reputational risk, in the face of unexpected events inclusive of natural as well as manmade calamities.

In other words, BCP is the strategy that every organization should have in place for keeping the lights on in the face of storm. BCP is ever more important for data and technology intensive businesses, for reasons to preserve data security and prevent loss or leakage of strategic business information.

How CAMS leveraged its BCP during an emergency

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds, which basically means handling a great deal of public information. As a custodian of information sensitized to the requirements of data security, it strongly believes in managing and keeping IT in-house and not outsourced.

As a trusted Technology Enabled Services partner to the Indian Financial Sector, CAMS has in place a comprehensive Business Continuity Plan, focused not only on Hardware and Software infrastructure, but also on people, ensuring that all staffing requirements are adequately met with, in times of emergency.

CAMS is one of the very few businesses that were able to sustain their operations and functions amidst that extreme flooding that paralyzed the city of Chennai in November-December, 2015.

Mr. N. Ramakrishnan, Chief Information Officer, CAMS, in his recent interview featured on ET CIO, elaborates how the company’s business operations and services managed to remain undisrupted, owing to staffs’ tremendous commitment, high quality of BCP (Business Continuity Plan) and its governance mechanism and lastly, the technology infrastructure.

Excerpts from the ET CIO Story –

“Even during the Chennai floods CAMS was able to work, deliver services and meet our SLA (service level agreement) commitments on time,” Mr. Ramakrishnan said.

Certainly, to achieve such feat, organizations need to put huge combined efforts with precise planning, regular practice and flawless execution. It is interesting to know and understand CAMS’ core IT infrastructure planning and its management.

CAMS has three data-centers – two within Chennai city and one in Coimbatore. One of the Chennai data-centers is a standby in-city data-center.

“All the three data-centers carry identical hardware components in terms of user experience, network security and capacity management. That means, any of the three data-centers in isolation can support production volumes on a standalone basis even if any of the two data-centers fail,” Ramakrishnan explained.

This allows data replication from the primary data-center to the other two data-centers on a real-time basis. This leads to generation of two extra copies of same data at any point in time, which according to Ramakrishnan, is backed by a well-defined recovery point (RP) and recovery point objectives (RPOs).

From BCP perspective, this mechanism makes CAMS well-equipped to switch over from primary to standby or secondary data-center in case of any disasters, but without causing any sort of impact on company’s business operations and services.

But having BCP alone would not be enough to save organizations against any disasters unless BCP drills are practiced regularly, tested and are considered as an integral part of their business operations. In fact, that’s what The CIO has been doing continuously at CAMS during its close to three decades’ existence.

“We do periodic BCP drills and it is part of our smart business processes. We simulate the BCP drills by completely shutting down our data-centers and then try to ensure that we are able to operate and service our clients on production basis using our BCP through our Coimbatore data-center,” he pointed out.

Conducting BCP drills regularly, according to Ramakrishnan, has helped the organization to find out those gaps and fix them and then accordingly improve on every factor of BCP drills. “And this is how we can actually respond to disasters and natural calamities,” he said.

Besides, CAMS has a well-defined call tree structure that ensures each staff knows whom to call and how to act at the time of calamity. “Along with staffs, top management is also committed to call tree invocation like grouping, identifying and responding to any kind of situation. This is part of our culture and also a part of our BCP elements,” concluded Ramakrishnan.

To read the entire story as published, please visit: http://cio.economictimes.indiatimes.com/news/strategy-and-management/how-bcp-drills-helped-cams-keep-business-operations-afloat-during-chennai-floods-reveals-cio-Mr. Ramakrishnan/53750364

About CAMS:

 CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit http://www.camsonline.com

Weekly Roundup – August 20

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CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

As Brexit shock passes, Britain economy will slow down but should not experience recession, according to economists at credit rating agency Moody’s.  The growth for rest of the world is also stabilizing.

stocks

The ‘green fund’ proposal from The Road Transport and Highway ministry is rejected by Ministry of Finance. The ‘green fund’ proposal seeks to set aside 1% of project cost to provide green canopy along highways.

index

Punjab National Bank and United Bank of India started a unique facility wherein an account holder can verify his income tax return on e-filing site even without having net banking.
Bank

SEBI Chairman U K Sinha said efforts are under way to deepen the corporate bonds market and widen mutual funds penetration and strengthen the commodities market.

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According to Association of Mutual funds in India (AMFI), net inflows in debt MFS in July hit a 6 year –high at Rs. 43,913 crore.

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By bringing in uniform disclosure norms for both listed and unlisted companies, Insurance Regulatory and Development Authority of India (IRDA) is pushing for more transparency in the insurance segment.

rubber stamp with inscription INSURANCE

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to Leading Insurance Companies, Banks, NBFCs And Alternate Investment Funds. To know more visit www.camsonline.com

Powering the Indian Financial Services Industry

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CAMS, as an integral part of the Indian Financial infrastructure with more than 25 years of service, has built a credible reputation as a Transfer Agency to the Asset Management Industry of India. A trusted service partner to 8 out of the top 10 Asset Management Companies (AMCs) in India, CAMS remains the market leader with a substantial market share of over 62%, managing assets worth 148 billion USD, as recorded in the month of July, 2016.

At a time when organizations availed outsourcing services only after their businesses had achieved scale and got more complex, CAMS had the vision to build a service model  with a unique platform based outsourcing, right from the start.

CAMS was equipped to partner with organizations right from the early stages of operations launch, and has built scale, specialization to handle operations that were bound to increase in volume and structure with the aggressive expansion of the fund houses’ retail investor base.

While conventional outsourcing firms were looking at servicing clients abroad, CAMS concentrated on empowering AMCs in India, with state-of-the-art infrastructure, technology platform capabilities and deep domain expertise that it had. CAMS drove home the advantage of delivering international standards at Indian costs, in the domestic market.

Over the years, CAMS has evolved and diversified its capabilities, extending services to organizations across the domains of Private Life Insurance, Private Equity Funds, Banks and Non-Banking Finance Companies.

Besides offering specialized services and solutions to its B2B partners, CAMS also functions with the unique ability of a B2C service provider that attends to end customers’ needs through an assortment of touch points, viz. Pan-India network of Service centers, White Label Call centers and White Label Online Services.

With a in-house technology origination capability, technology led service solution design and speed to market are assured to clients.

CAMS has kept in pace with the massive volumes of transactions, expanding infrastructure and growing demands of its client AMCS, with innovative technology enabled service designs that deliver speed, standardization, transparency, regulatory compliance, data confidentiality and cost efficiency. In the Mutual Fund services alone, CAMS handles approximately 130 Million transactions per annum with near zero failures.

Through the years, CAMS has consistently added value to its client firms through multiple product/process innovations. CAMS leverages its massive data repositories and Business Intelligence (BI) & Analytics competencies to deliver valuable business insights that track investor behavior. Based on the insights, CAMS goes the extra collaborates with AMCs in designing and executing marketing strategies and product innovations.

Even as the concept of dematerializing documents in the Indian Financial sector was stabilizing, CAMS took paperless process implementation to the next level with the launch of CAMS eKYC and myCAMS initiative, that has greatly reduced time and effort to be invested in KYC and Mutual fund investment processes. CAMS has driven home the advantage of technology, taking clients to new highs in terms of process efficiency, access control and cost management.

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As a testimony to the trusted  strategic partnerships,  CAMS remains the only service partner  that manages and supports the complete value chain of investor services for several marquee funds, including 4 of the top 5 mutual fund houses  and 9 out of Top 15 MFs  in India.

With evolving industry dynamics and requirements from regulators and customers, many leading financial services firms outsource strategic operational activities to CAMS.CAMS is the service partner to 80+ financial institutions.

 

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

 

The oncoming wave of digitization in the Insurance Industry

e-Insurance

The ongoing steady development in the FinTech space is a product of a world progressing towards cashless transactions.  The regulators, ecosystem participants are gearing towards making all Payments and settlements to happen electronically.  Nevertheless, consumers in India have been slow to adapt themselves to digitization financial records, documents and policies.  However, this disposition is bound to change in the insurance space in India with new regulations that have been unveiled by the IRDAI.

Insurance Regulatory and Development Authority of India (IRDAI), in its issuance of e-Insurance Policies Regulations, 2016, has designated that most categories of insurance policies are to be issued in digitized, electronic form, from October 1, 2016. Insurers would therefore require an e-Insurance Account (eIA) to purchase or renew most policies, including motor insurance and overseas travel insurance policies.

Benefits of e-insurance

It is apparent that the benefits of e-insurance accounts are not limited to safety, convenience and single KYC alone; potentially reduced premiums over a period of time renders digital insurance highly favorable. Prospects of a single-view platform to allow view and management of all policies held should certainly improve policyholder experience over time.

The benefits of digitizing Insurance policies is aplenty; digitized policies will be convenient and safe, eliminating paper and associated risks of storage and loss. With no risk of physical loss or damage, e-insurance policies will effectively eliminate need for duplicating documents, which in itself is a tedious process.

e-insurance policies are also thoughtful in provisioning privilege to access and manage the insurance account and all policies taken by an authorized representative of the policyholder, in the event of the latter’s unexpected loss of life.

With physical insurance policies, there have been several cases where the surviving beneficiary was at a loss to locate the physical document, or was not even aware that such a policy existed, that it has led to unclaimed amount with insurers in excess of Rs. 5000 Crore.

Also e-insurance policyholders would be in a position to reap the complete benefits of financial inclusion through the JAM Trinity (Jan Dhan, Aadhar and Mobile) and similar programs.

Adapting to the inevitable

As a relatively new concept, the prospect of owning e-Insurance Accounts had seen only a lukewarm reception so far despite the many benefits, owing to limited awareness among users. However, with the IRDAI policy coming into effect by October, consumers have been urged to create e-insurance accounts; the process for the same could be initiated with the aid of the insurer or through CAMSRep, without causing any noticeable inconvenience to the policyholder.

Dematerialization is anything but new to financial documentation. Investors have been operating extensively in securities, stocks and bonds from their demat accounts, leveraging the deft paperless convenience that it offers. The same is to be replicated for insurance with policies to be issued in demat forms. CAMS, as a trusted technology enabled services partner to the BFSI, has always been a step ahead in adapting to new technology breakthroughs and this was no different in the space of digitizing insurance.

Insurance Digitization made easy with CAMSRep

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CAMS Insurance Repository Services Ltd (CAMSRep), a subsidiary of CAMS, licensed by (IRDAI) and among the first of its kind to be launched, introduced electronic insurance policies and has acted as a single point of service for all e-insurance policies held, making it convenient for policy holders to get service on demand.

CAMSRep Centers in over 270 locations across India act as a point of presence for both customers and sales on behalf of insurance companies, facilitating processes of Data Digitization, Electronic Insurance Account Creation, Electronic Policy Credit, Online premium payment and acceptance of Policy Owner Service Requests.

It is noteworthy that the Insurance Repository business of CAMSRep was recognized by Celent and Asia Insurance Review at the 5th Asia Insurance Technology Awards 2015 as the ‘Best Newcomer in the Insurance Technology’ space.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

Weekly Roundup – August 13

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CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

World economic outlook plunges to the lowest in the last 3-years, confirms results of World Economic Survey conducted by prominent German institution.

GSecs

China to enforce strict regulations to tackle issues of overcapacity looming large in its manufacturing sector.

Central Board of the RBI approves plans to transfer surplus profit worth Rs 658.76 billion from RBI to the Government of India.

RBI

RBI Governor intends to work by new agenda for the remnant of his term in the office, covering institution of guidelines for peer-to-peer (P2P) lending platforms and account aggregators, regulations governing bond markets operations and improvements to be effected to the marginal cost-based lending rate (MCLR) system.

stocks

India’s July retail inflation estimated to lie above the target set by RBI, owing to increase in prices of food staples.

SEBI in its capacity as the regulator of Securities Market amplified the additional exposure limits from 5% to 10%, for debt mutual funds in housing finance companies, with a view to create more space to accommodate investments worth ~50K Crores of rupees in the HFCs.

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Mutual Fund houses are set to obtain self-certification from customers by 31st August, 2016, to define the account holder’s residence or residences to meet FATCA requirements, especially in the case of folios opened on or after 1 July 2014.

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India Nuclear Insurance Pool launched the country’s first ever insurance policy for Nuclear Suppliers. The move seeks to develop new possibilities for rendering nuclear power plants safe for generating electricity.

InsurancePolicy

IRDA Chief urges launch of new insurance products to achieve more coverage and highlights the need to incentivize distributors sufficiently.

All insurance policies to be released as digitized e-forms, from October 1, 2016 rendering e-Insurance Accounts (eIA) as mandatory requirements for purchase or renewal of a majority of policies.

e-Insurance

 

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to Leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com