Intermediaries play a pivotal and valuable role in promoting sale of Mutual Funds. It is therefore vital that those engaged in selling Mutual Funds have the highest standards of knowledge attitude and ethics. Their well being, quality orientation and ways of doing business will have a significant impact on how the Mutual Fund Industry develops in the future.
AMFI introduced the process to register the intermediaries who have passed the certification test as AMFI Registered Mutual Fund Advisors (ARMFA), thus laying the foundation for an organized industry and allotting a unique code-AMFI Registration Number (ARN) along with an identity card. SEBI recognizing the importance of this initiative taken by AMFI had made Registration with AMFI after passing AMFI Certification Test compulsory for intermediaries. SEBI has clarified that after obtaining certification from NISM as per changed mandate, the requirement of registration with AMFI, in terms of its circular dated November 28, 2002 would continue.
As such, all AMFI/ NISM Certified Intermediaries engaged in marketing and selling of Mutual Fund schemes are required to be registered with AMFI after passing AMFI/ NISM Certification Test. The Mutual Funds will not be able to deal with intermediaries who are not registered with AMFI and obtained ARN.
In terms of SEBI Circular dated September 13, 2012, "AMFI shall create a unique identity number of the employee/ relationship manager/ sales person of the distributor interacting with the investor for the sale of mutual fund products, in addition to the AMFI Registration Number (ARN) of the distributor. The application form for mutual fund schemes shall have provision for disclosing the unique identity number of such sales personnel along with the ARN of the distributor."
AMFI has authorized M/s Computer Age Management Services Pvt. Ltd. (CAMS) to act as processing agent on its behalf for the purpose of ARN.
For registering with AMFI, Intermediaries are required to apply in the prescribed form. The form can be obtained from the office of AMFI or any office of CAMS. Alternatively the form can also be downloaded from AMFI's website www.amfiindia.com.
Application forms must be submitted along with KYD acknowledgement or along with KYD application form in person, in case KYD process is not completed, to the office of CAMS (CAMS-POS). The details of fees and documents required to be submitted in respect of various categories of intermediaries is indicated in the below mentioned table:-
|Entity||Required Documents||Additional requirement||ARN Registration Fees|
|Banks (Other than those specified below)||Copy of license issued by RBI, Copy of Board Resolution & List of Authorized signatories with Specimen signature||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||4,00,000|
|Regional Rural Banks, District Central Co-Op. Banks||Copy of license issued by RBI, Copy of Board Resolution & List of Authorized signatories with Specimen signature||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||1,00,000|
|Non Banking Finance Company (NBFC)||Copy of Certificate of Registration issued by RBI, Copy of Articles/ Memorandum of Association, Copy of Board Resolution, List of Authorized Signatories with Specimen signature||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||1,00,000|
|Public Ltd. Co.||Memorandum and Articles of Association, Copy of Board Resolution & List of Authorized signatories with Specimen signature||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||4,00,000|
|Pvt. Ltd. Co.||Memorandum and Articles of Association, Copy of Board Resolution & List of Authorized signatories with Specimen signature||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||40,000|
|Limited Liability Partnership (LLP)||
||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||40,000|
|Partnership Firm||@@ Declaration as mentioned below, Partnership Deed & List of Authorized signatories with Specimen signature||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||20,000|
|Urban Co-Op. Banks, Societies, Trusts, HUFs||Copy of license issued by RBI, Copy of Board Resolution & List of Authorized signatories with Specimen signature
Society by-laws, copy of certificate issued by Registrar of Societies & list of Authorized signatories with Specimen signature
Trust deed, copy of Certificate of Registration & List of trustees with Specimen signature
@@ Declaration as mentioned below, HUF deed and Name of Karta & Authorized person with Specimen signature
|AMFI/ NISM Certified & AMFI Registered Corporate Employee.||20,000|
|Post Offices||List of Authorized signatories with Specimen signature||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||15,000|
|Micro Finance Institution||The relevant documents as may be applicable as stated above, depending on the category under which the Micro Finance Institution is incorporated viz. Society, Trust, Company, NBFC, etc. and the document evidencing that the entity is a Micro Finance Institution||AMFI/ NISM Certified & AMFI Registered Corporate Employee.||15,000|
|Proprietorship Firms||Self Declaration for Proprietorship firm **||AMFI/ NISM Certified & AMFI Registered Proprietor/ Employee||3,000|
|Individuals||Copy of AMFI/ NISM passing Certificate/ NISM Mark Sheet **
** Self attested copy of mark-sheet containing candidate’s photo and PAN is accepted up to two months from date of exam. Thereafter one has to submit a self attested copy of passing certificate along with the application.
|Two stamp size photographs||3,000|
Senior Citizens Criteria to apply for allotment of ARN under this category :
Any individual satisfying any of the above mentioned criteria is eligible to register himself as ARN holder under senior citizen category.
Copy of CPE certificate
|Two stamp size photographs||3,000|
|New Cadre of Distributors as defined in SEBI Circular dated September 13, 2012 and as notified by AMFI||Please click here for details||1,500|
|Corporate Employees||As per Grid Below|
|No of Corporate Employees||Fees per Employee (Rs.)|
|First 100 Employees||3,000|
|* Incremental 101 to 200th Employees||2,000|
|* Incremental 201 to 500th Employees||1,000|
|* Incremental above 500th Employees||500|
The prescribed fees can be paid only by demand draft in favour of the "Association of Mutual Funds in India" payable at the location of the CAMS office (CAMS-POS) to which the form is submitted.
"I hereby declare that
i) I, ______________________ am the sole proprietor of the Proprietorship Firm _______________________________ and I am myself engaged in selling and marketing Mutual Fund Products.
ii) I am not engaged in selling and marketing Mutual Fund Products and employed Mr./ Ms. _____________________________________ (attach a list in case there are more employees) for selling/ marketing Mutual Fund products on behalf of the Proprietorship Firm, for which form for registration as corporate employee is submitted herewith.
I hereby undertake that all the persons who are engaged in selling and marketing Mutual Fund Products are AMFI/NISM Certified and registered/ shall pass NISM Mutual Fund Distributors Certification Examination and Register with AMFI before canvassing the mutual fund business. I confirm that my firm will carry on canvassing of business for products of Mutual Funds in accordance with Guidelines and Norms for Intermediaries (AGNI) including Code of Conduct prescribed by SEBI/ AMFI and any rules and Regulations that may be framed or amended by SEBI/ AMFI from time to time."
@@ Declaration by Partnership Firm/ LLP/ HUF,
where Partnership Firm/ LLP and HUF as a corporate entity apply for registration without passing AMFI/NISM Certification Test by any partner/ Karta of HUF, but along with application for registration of their employee who is AMFI/NISM Certified,the declaration / undertaking as under should be furnished along with application:
"I/We hereby declare that I, Karta of HUF/ any of the partners am/ is not engaged in the activity of selling/ marketing of Mutual Fund schemes and all such activities are carried out only by the persons employed who are AMFI/NISM Certified.
I/We further undertake that all our employees who are engaged in sales and marketing Mutual Fund schemes shall be AMFI/ NISM certified and obtain registration with AMFI before engaging in the activity of selling/ marketing of Mutual Fund schemes .
I/We also hereby undertake to pass NISM Certification Test and obtain registration with AMFI as when I, Karta of HUF/ any partner decides to engage in sales and marketing of Mutual Fund schemes in future."
The documents shall be scrutinized and if found in order and if the prescribed fees have been realized, a certificate of registration or photo identity card, as may be applicable shall be issued. These will be mailed directly to the applicant.
Fees payable for issuing duplicate ARN Card/ Certificate of Registration
Fees payable for obtaining duplicate ARN card due to change of name, address, ARN card lost, etc. in case of individuals/senior citizens is Rs. 1000/-
Fees payable for obtaining duplicate EUIN card due to change of name/ EUIN card lost, etc. in case of corporate employees is Rs. 1000/-
Fees payable for issue of duplicate Certificate of Registration in case corporates is Rs. 5000/-
Fees payable for issue of Certificate of Registration to Corporates (existing ARN Holders) due to change in name/ change of status
Click here to get the list of CAMS-POS
In terms above mentioned notification and SEBI circulars, employees/ relationship manager/ sales person of ARN holders who are engaged in marketing of Mutual Funds Products, are also required to pass test and register with AMFI, under ARN of the employer.
AMFI, has allotted Employee Unique Identity Number (EUIN) to all the employees, who are registered with AMFI and having valid registration. A photo identity card bearing EUIN is also being issued to the existing corporate employees after they surrender existing corporate employee ARN card issued to them.
The employees would be henceforth issued EUIN card containing EUIN, name, photo and validity period of EUIN.
The said EUIN is required to be mentioned on the Mutual Fund scheme application forms with effect from January 1, 2013.
EUIN issued to the employees would remain same, even if they change their employment and join some other ARN holder for selling/ marketing Mutual Fund products. However, for effecting such change in AMFI's records, the employees are required to submit duly filled in form for mapping EUIN as stated here under.
The employees are required to fill up the form for mapping EUIN in the following scenarios and submit the duly filled in and signed form to CAMS along with required documents.
The AMFI Registration Number (ARN) has been introduced as the unique code, which identifies the intermediary as ARMFA.
Passing certificate issued by National Institute of Securities Market (NISM) in respect of 'NISM - Series V-A : Mutual Fund Distribution Examination' has validity period of three years. Also, the CPE certificate issued by NISM is valid for three years.
Accordingly, ARN issued to individual, senior citizens and EUIN issued to employees against such certificates shall have validity period from the date of submission of ARN registration application up to the validity date mentioned on the passing certificate/ CPE certificate, if the application is in order. In case of corporate entities, validity period for Certificate of Registration issued is 3 years.
In order to promote best practices and ethical standards in the business of sale of Mutual Fund schemes, AMFI has formulated broad guidelines and norms including a code of conduct for the intermediaries, which will be applicable to ARMFA.
AMFI believes that a sincere endeavor to adhere to the guidelines and the code would help promote best and healthy practices in the area of sales and marketing which would ultimately benefit all concerned - the investor, the intermediary and the industry as a whole.
ARN holders/ EUIN holders are required to apply for renewal of ARN/ EUIN on or six months prior to expiry of validity period of ARN/ EUIN. If the renewal application is submitted prior to expiry of validity period of ARN/ EUIN and the same is found in order, there would be continuity in the validity period of ARN/ EUIN, post renewal.
If the renewal application is submitted after expiry of ARN/ EUIN, validity of renewed ARN/ EUIN would commence from the date of submission of renewal application and would be valid up to the validity date mentioned on the NISM passing certificate/ CPE Certificate, in case of individual/ senior citizens/ employees. In case of Corporate ARN holders, Certificate of Registration shall be renewed for a period of three years from the date of submission of ARN renewal application.
The procedure for renewal of ARN / Certification of Registration is as under:
|Category of ARN Holder||FEES (Rs.)|
|Banks (Other than those specified below)||2,00,000|
|Regional Rural Banks, District Central Co-Op. Banks, NBFC, etc||50,000|
|Public Ltd. Co.||2,00,000|
|Pvt. Ltd. Co.||20,000|
|Limited Liability Partnership (LLP)||20,000|
|Urban Co-Op. Banks, Societies and Trusts/ HUFs||10,000|
|Micro Finance Companies||7,500|
|New Cadre of Distributors||750|
|Employees||50% of the registration fees as per the graded fee structure mentioned for registration of employees, subject to the terms and conditions mentioned therein.|
The above mentioned revised ARN fees are applicable to the ARN holders whose ARNs are falling due for renewal on or after November 1, 2012. For the ARN holders, whose ARN was falling due for renewal up to October 31, 2012 and who are applying for renewal of ARN on or after November 1, 2012, the old fees as per the details mentioned below would be applicable for renewal of ARN :
|Banks/ NBFC/ Institutional Distributors||250,000|
|Public Ltd. Co.||250,000|
|Pvt. Ltd. Co.||25,000|
|Limited Liability Partnership (LLP)||25,000|
|Societies and Trust / HUF||12,500|
The following CPE Providers are empanelled with NISM to conduct the Continuing Professional Education program for Mutual Fund Distributors :
|S.No||Name of CPE Provider||E-mail Id||Contact Details|
|1||Centre for Investor Education & Learning Pvt. Ltd. (CIEL)||firstname.lastname@example.org|| 022-42170575 |
|2||Financial Technologies Knowledge Management Co. Ltd. (FTKMC)||email@example.com|| 022 - 67318840 |
022 - 67318908
|3||National Institute of Securities Markets (NISM)||firstname.lastname@example.org||022 – 66735100-05|
|4||National Securities Depository Ltd. (NSDL)||email@example.com|| 022 - 24994237, |
022 - 24994354,
022 - 24994306
|5||National Stock Exchange (NSE)||firstname.lastname@example.org||022 – 26598216|
For certificate queries, please contact ::
Tel: 022-6111 5555
For further information on NISM Certification Test as well as CPE, one may contact :
National Institute of Securities Markets
6th Floor, NISM Bhavan
Plot No 82, Sector 17
Vashi, Navi Mumbai 400 703
Ph: 022-6673 5100 - 05