What is CAMS
Computer Age Management Service (CAMS) is a mutual fund transfer agency to Indian asset management corporations. The company was incorporated in 1988 and is headquartered in Chennai. It became a publicly listed company in 2020, after an initial public offering through an offer for sale by its existing shareholders.
This is an associate organisation utilised by Mutual Fund companies and other financial establishments to record transactions and maintain these records. Transfer agents within the investment company trade can facilitate maintaining records of shopping for and commerce of securities inside funds. Some transfer agents additionally calculate and pay dividends and facilitate preparing and mailing investor account statements.
CAMS is a Securities Exchange Board of India (SEBI) regulated entity. CAMS is co-owned by NSE Strategic Investment Corporation Ltd. (NIC), a subsidiary of National Stock Exchange, HDFC Group and Acsys Investments Pvt. Ltd.
CAMS Service Cycle
CAMS is not just a business to business partner serving fund managers and distributors. They also reach the end consumers through a nationwide network of service centres and online portals. CAMS boast of serving over 60% of the present mutual fund assets of the country. They do not have any legal authorisation to offer mutual fund recommendations or even distribute funds. AMCs usually avail the following services of CAMS-
- Setting up an account
- Processing transactions
- Data management
- Customer service
- Risk assessment & management
- Commission administration
- Other value-added services
Mutual Funds using ERP
- Transaction acceptance and processing
- Redemption and payout settlement and whole reconciliations
- Record Keeping
- Customer Service through pan India service centres, call centre, web
- White Label Call Centre
- Business Intelligence and Analytics
- Brokerage computation and Payouts
- Dividend issuance, dispatch and reconciliations
- Business Continuity services
- Distributors help desk and end to end servicing of all distributor queries
- Document management and printing solutions
- Interactive Chat Bot Solutions for most of the Customer Self Service needs
- Consolidated and Active Statements with varieties of inbuilt dynamic dashboard
Equity and Venture funds
- Investor onboarding services
- MIS and Reporting
- Corporate action and Tax Support
- Life Cycle Management
- Intermediaries Revenue Management
- Notices and collection management
- Services for Bank and Non-banking Finance Companies
- Account Opening and Account Management
- Customer service
- Instrument processing, reconciliation and Accounting
- Help table to support branch /vendor and DSAs
Banks & non-banking Finance Companies
- Account opening Services for Banks
- KYC Verification and validation
- Peripheral services through homegrown BPM Solutions
- Pre and Post sanction loan processing for NBFCs, Housing Finance Companies, SME Lenders
- Credit Appraisal Memorandum (CAM) preparation for underwriting help
- Detailed Non Discrepancy Checks (NDCs) and approval cum initiation of loan disbursals
- Record Management Services
- FATCA Compliance and reporting
NBFC account aggregation services
- Investors can register themselves in CAMSfinserv
- Enables Secure registration with Key Identifiers like Mobile, PAN and eMail.
- Enabling Financial Information Users to make use of the secure data flow to be used for their end customer benefit
- Providing consent management services to its customers to perform the above requirements
Mutual Fund distribution is big business in India and the transaction processing environment is complex. There are several sub-agents of distributors in the country leading with a retail capitalist base and they will need data concerning Mutual Fund transactions.
So, CAMS offers Distributor Services packages to all distributors who operate using retail sub-agents.
The services include-
- Maintenance of sub-brokers details
- Maintenance of investor details
- Import of month-end net asset positions
- Import of investors daily transaction details
- Computation of incentive payable to sub-brokers for sales
- Computation of commission payable to financial consultants for sales
- Front-end commissions payable to sub-brokers
- Trailer fees payable to sub-brokers
- Import of month-end trailer fees payable
- Target-based incentive commissions payable to sub-brokers
- System to view investors portfolio under one client number
What is CAMS USP
CAMS has built a highly reliable IT system that can support more than 11 million transactions a month. It also provides seamless information using real-time connectivity with a geographical spread covering clients’ office’s customer service centres and back offices across India. CAMS provides a distributed computing environment that can be shared by customers, entities and different verticals.
Since CAMS acts as a protector of customers’ knowledge, it takes special care to keep up complete confidentiality of the info. CAMS uses the knowledge that it maintains for the only purpose of serving customers and ensures that there’s no conflict of business interest.
CAMS employs over 5,000 Computer Age Management Servicepeople and has more than 20 years of experience in the financial services field. It has its college which is used to administer knowledge-management programs and also helps hire and train people.
CAMS is committed to quality associate degreed is an ISO 9001:2008 certified company. it’s outlined processes that square measure followed diligently. it’s managed via letter levels of quality with the task of putting in five million new accounts a year and process on the brink of eight million transactions a month. With offices unfolding across 260+ locations and continuous branch growth plans, CAMS will serve all its customers across India.
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If a location doesn’t have a CAMS group action purpose, FinNet helps. F. FinNet is a web-based electronic order routing and settlement platform. This system steps into route orders and finishes the processing on the same day.
Central Record Keeping Agency (CRA) for National Pension System (NPS)
- Dispatch of PRAN Card, Computer Age Management Service IPIN/TPIN and Welcome Kit.
- Digitization and maintenance of Subscriber record/preferences.
- Updating Subscriber record/preferences based on requests made for change/revision.
- Providing an operational interface to other intermediaries under NPS and Architecture.
- Monitor the flow of contributions made by subscribers to their PRAN account.
- Unitization of contribution amount created by subscribers to his/her PRAN account.
- Generation and dispatch of Statement of Transactions to Subscribers.
- Providing Call Centre facilities to Subscribers.
Features and Benefits of CAMS
CAMS is an ISO certified establishment and follows a stringent quality check policy with six sigma levels of quality, they set up 50 lakh accounts annually.
2. Transfer Agency Service
The responsibilities of active Computer Age Management Service investment firm firms are several. a number of them are processing transactions, mapping trends, giving client support once needed, and managing the fund. CAMS provides the technical help necessary to complete these tasks instantly.
3. Risk Management
CAMS follows a self-determining risk management method, supervised by specialists. As an example, each doable operative risk is managed frequently with a custom-built software package to steady outcomes.
4. Strong web presence
Currently, they use an internet order-routing methodology known as FinNet. This helps them cater to orders from places while not CAMS service centres.
5. Cutting-edge Technology
CAMS boasts of regionally developed technology solutions on par with international standards. so that they play by quick distribution and flexibility. it’s an intensive and up-to-date IT infrastructure that may support over one large integer transaction monthly.
6. E-KYC facility
While taking care of transactions of various mutual funds, they permit investors to subscribe directly or via mobile apps. The e-KYC possibility is instant and cost-free.
CAMS was founded in early 1988 by V Shankar as a start-up in the area of Software Development and Computer Education. This was a promising venture, and for 3–4 years in the early 90s, it was one of the establishments in Chennai, similar to NIIT in the education domain.
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During Y2K, CAMS determined that the domestic money services were the world on focus, and also the space of operation in managed services among the IT services. The Indian money Services went through a renaissance within the amount 1997/8-2006/7, with changes in regulation, merchandise and supporting infrastructure.
Money businesses, forever early Computer Age Management Service adopters, started taking advantage of technology and networking to facilitate their business, and CAMS pivoted into what square measure currently referred to as Platform primarily based services to the Indian money trade.
In 2000 the HDFC Group invested in CAMS, facilitating in its chosen businesses. In 2007 the company accepted facilitate help in its operations. Early 2014 India’s exchange, the NSE took a foothold within the Company.
With the appearance of close-ended Mutual Funds, CAMS was concerned within the process of the Indian Bank fund and later began to handle the operations of Alliance Capital fund. This was the primary Open-Ended fund of CAMS. CAMS additionally handled the oldest of Indian funds like JM Mutual Fund, ITC Threadneedle, city Asian country fund, Sun & FC fund, Dundee fund, Taurus fund, etc.
As of Jun 2020, CAMS employs about 6000+ people and offers varied services to the Mutual Funds, Insurance, and Banking industries through its network of 270+ locations all over India.