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CDC’s Trustee & Custodial Services achieves 100 funds

 July 1, 2014  /   Blog  /   no responses  Comments

Central Depository Company’s Trustee and Custodial Services department has recently achieved 100 funds under its client umbrella with aggregated net assets of more than Rs. 177 billion.


Recently KASB Capital Protected Gold Fund and NIT Income Fund joined CDC for its trustee services taking the count of mutual funds under CDC’s trusteeship to 100 funds. With this achievement, CDC has reiterated its position as the market leader in private sector. Since its launch in 2002, CDC Trustee and Custodial Services has become the preferred choice of Asset Management Companies (AMCs) and Pension Fund Managers due to excellent service quality, professionalism, apt business knowledge and adherence to rules & regulations.


The prime responsibility of CDC as the trustee/custodian is to take into its custody all assets of the Collective Investment Scheme and hold them in trust on behalf of the unit or certificate holders. Additionally, CDC carries out the instructions of the Asset Management Company, investment adviser and pension fund manager in respect of the investment portfolio and the units/certificates held by the investors. CDC also ensures that the scheme is being managed in accordance with the provisions of the constitutive documents, the NBFC Rules, the Regulations and Voluntary Pension Scheme (VPS) Rules.


Recently, CDC has taken a step forward by indigenously developing a comprehensive Fund Management System (FMS) for its Trustee and Custodial Services clientele. FMS is an electronic system that creates automated interface between all its elements to ensure Straight through Processing (STP) for settlement of transactions. It establishes an online link between the T&C Department at CDC and AMCs & Settling Banks through online transmission of instructions from fund managers to trustee and management of electronic pay & collect system through banking channels. The implementation of FMS has eliminated manual processes and duplication of work and has helped minimize chances of errors. Through this system, AMCs can pass online instructions of unit management to the CDC Trustee and Custodial department. FMS provides a single link through which funds can complete transactions as well as avoid multiple individual connections that are costly and inefficient.

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