leading bourse NSE’s strategic investment arm on Tuesday acquired 45 per cent stake in Computer Age Management Services (CAMS), a technology solution provider for mutual funds and other financial services.
While the deal value has not been disclosed, the strategic investment is expected to boost volumes on the mutual funds trading platform on NSE.
The 45 per cent stake is being purchased by Strategic Investment Corporation, a subsidiary of NSE, from Advent International, HDFC, HDFC Bank and Acsys Software India.
While Advent’s entire holding has been purchased, the others would continue to own part of their holdings. The balance 55 per cent of shares in CAMS would be held by Acsys and HDFC group.
All three shareholders (Strategic Investment Corp, HDFC and Acsys) would be represented on the Board of Directors of CAMS, the exchange said in a statement.
There would be no change in CAMS management team and structure and business would continue as usual.
The investment would give a big boost to volumes on the mutual fund trading platform on NSE, because CAMS would provide IT enabled service solutions to asset management companies who are running mutual fund schemes on the exchange platform.
“This association will bring in unique capabilities in expanding the reach of mutual funds and other financial products through the exchange infrastructure of member terminals across the country, apart
from its unique capabilities in governance of members, settlement and market making,” NSE said.Earlier in 2010, Asia’s oldest bourse, BSE, was also reportedly in talks to acquire majority stake in Chennai-based CAMS.
However, market regulator Sebi was believed to be not in favour of the exchange getting into this business.
It was said that Sebi opposed the move on the grounds that there could be a conflict of interest as the deal would result in the stock exchange — the first level regulator — holding a majority stake in a market intermediary.