Sundaram BNP Paribas Fund Services forayed into Registrar and Transfer agency operations and would invest Rs 60 crore in the first phase over the next three years, with majority of investments going into the technology platform.
The firm, which is a 51:49 joint venture between Chennai-based Sundaram Finance Ltd and France's BNP Paribas, aims to have a market share of 8-10 per cent of the total assets available for servicing in the span of five years.
The venture would have Rs 20,000 crore of assets under servicing in the first year of operations and look to quadruple it to Rs 80,000 crore at the end of three years.
At present, the fund services business is currently dominated by the two biggest registrar and transfer agents Karvy Computer Share and Computer Age Management Services (CAMS), who service 95 per cent of the mutual industry between them.
"Two players dominate the fund services business. But we feel it is the right time to enter into the business, given the Indian growth story and growing interest in mutual funds. The retail oriented customer service and the trust we have build, the culture which our joint venture partners also share, would be the key plus points in the fund management business," T T Srinivasaraghavan, managing director of Sundaram Finance Ltd said.
To start with, Sundaram BNP Paribas Fund Services would start servicing Sundaram Mutual Fund, which has around 1.4 million customers and later expand full-fledged services to the mutual fund industry and provide specific solutions to asset managers.
The company would also double its workforce at its two centers in Chennai and Madurai from over 150 employees now, in the span of 12 months.
"It is puzzling that only two players offer fund management services to a fast growing and high potential domestic mutual fund industry. We would look at servicing the domestic industry and would look to expand it to our global clients in Europe, UK and France as we go forward," Patrick Colle, chief executive officer of BNP Paribas Securities Services said.
Srinivasaraghavan also said the venture is open to extend the services to Corporates, though the current focus would be on the mutual fund industry.
Source: http://www.mydigitalfc.com/news/sundaram-bnp-paribas-fund-services-forays-rta-operations-939
The firm, which is a 51:49 joint venture between Chennai-based Sundaram Finance Ltd and France's BNP Paribas, aims to have a market share of 8-10 per cent of the total assets available for servicing in the span of five years.
The venture would have Rs 20,000 crore of assets under servicing in the first year of operations and look to quadruple it to Rs 80,000 crore at the end of three years.
At present, the fund services business is currently dominated by the two biggest registrar and transfer agents Karvy Computer Share and Computer Age Management Services (CAMS), who service 95 per cent of the mutual industry between them.
"Two players dominate the fund services business. But we feel it is the right time to enter into the business, given the Indian growth story and growing interest in mutual funds. The retail oriented customer service and the trust we have build, the culture which our joint venture partners also share, would be the key plus points in the fund management business," T T Srinivasaraghavan, managing director of Sundaram Finance Ltd said.
To start with, Sundaram BNP Paribas Fund Services would start servicing Sundaram Mutual Fund, which has around 1.4 million customers and later expand full-fledged services to the mutual fund industry and provide specific solutions to asset managers.
The company would also double its workforce at its two centers in Chennai and Madurai from over 150 employees now, in the span of 12 months.
"It is puzzling that only two players offer fund management services to a fast growing and high potential domestic mutual fund industry. We would look at servicing the domestic industry and would look to expand it to our global clients in Europe, UK and France as we go forward," Patrick Colle, chief executive officer of BNP Paribas Securities Services said.
Srinivasaraghavan also said the venture is open to extend the services to Corporates, though the current focus would be on the mutual fund industry.
Source: http://www.mydigitalfc.com/news/sundaram-bnp-paribas-fund-services-forays-rta-operations-939
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