Computer Age Management Services, or CAMS, which serves as the registrar and transfer agent for 15 fund houses has launched digiSIP facility for distributors and investors. digiSIP uses prefilled forms to set up SIPs.
Currently, distributors transacting physically have to get a separate mandate and cheque from clients for creating every new SIP. This process can sometimes take up to 30 days. The registrar claims that starting SIPs with digiSIP will take just seven days.
Now, distributors can generate e-mandate based on investors permanent account number, or PAN, using eSign facility. Your clients need to have Aadhaar and ensure that it is linked to the bank account where the mandate has to be registered. The biggest advantage of this facility is that your clients can start any number of SIPs across CAMS serviced fund houses with one e-mandate.
This e-mandate can be also used for lumpsum investments without a cheque or net banking. It does not have date restriction, which means you punch in any number of transactions for any date across 40 banks.
This facility is expected to reduce distributor’s time spent in paperwork and ensure that mandates are not rejected.
Some pre-requisites for distributors to use digiSIP:
- Distributors need to be empaneled with CAMS serviced fund house to initiate digiSIP.
- Client must be KYC compliant.
- SIP start date should be after a minimum of seven business days from the date the SIP set up is initiated.
- If a new mandate is being done via net banking, mandate registration should be completed within 24 hours of setting up SIP. If this is not completed in 24 hours, the first installment may fail leading to cease of SIP registration.
