Development in the mutual funds industry has been pacing in recent years. Various intermediaries in the process should be given credit for this reach. However, when an investor consults an intermediary and invests his funds in the financial markets based on consultation with that financial person, there should be transparency in this transaction.
There are various norms laid by the Securities Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI) to regulate the mutual fund industry and aim to protect investor’s hard-earned money. AMFI Registration Number (ARN) or ARN code in mutual funds is one of the crucial documents for distributors. Investors and intermediaries willing to enter this industry must know about the ARN code.
Let’s explore every aspect of this code, its significance, eligibility, and process to get an ARN code.
What is the ARN Code?
The person or entity selling mutual fund units to the investors is known as a distributor. Every distributor goes through several eligibility tests and formalities to get the role to become an AMFI empanelled distributor. Finally, after passing all these, the person/entity is allotted an ARN number. It is a unique identity code provided by the AMFI with an ID card.
The ARN code full form stands as AMFI Registration Number. This number is mandatory for every distributor selling any mutual fund scheme. Asset Management Companies (AMCs) are responsible for checking this code from all the distributors selling its units. Also, the investors can ask any distributor to show his ARN code and ID card to authenticate his/her role as a distributor.
This code has a unique combination of numerical digits and letters.
- First digits: alphabets – alphabetical code
- Two digits: numeric – State code
- Two digits: numeric – Month
- Two digits: numeric – Years
- Six digits: numeric – Main code generated by the system
- Last digit: numeric – checksum digit
It is the format of the ARN code; the six-digit code in it is the most crucial number. So, distributors usually share ARN in this form as it is the main unique identification number. For example, the ARN code of Dezerv is – 248439.
Significance
- SEBI through AMFI are keen to provide seamless service to the investors and distributors, and agents are constantly in touch with AMFI. So, distributors are duly authorised by AMFI.
- The eligibility exams for distributors are professionally designed. Usually, the people who clear these exams have a proper knowledge of the mutual fund industry. One can obtain the ARN code only after passing these exams, so they aim that the distributors are educated and in a way set high standards for the distributors.
- Investors can identify the authorised person with this ARN number. These distributors would also make investors aware of all the risks in the market. Moreover, it is also the responsibility of investors to take advice only from the registered distributors who have this code.
- ARN code would also help investors track the transactions made by the distributor on their behalf.
Your portfolios should be managed with the utmost care as it has your hard-earned money, isn’t it? Check out the portfolio management service by Dezerv and get started today!
Eligibility Criteria
The individuals and corporations willing to work as distributors should fulfil all the requirements as follows:
- A person should be 18 or older to apply for the ARN code.
- Intermediaries must clear the ‘NISM-Series V-A: Mutual Fund Distributors Examination’ conducted by the National Institute of Securities Markets. This certification is valid for three years from the issuing date.
- Senior citizens intermediaries should have attended the ‘Continuing Professional Examination’. This certification is valid for three years from the issuing date.
- Corporations in mutual funds unit distribution business should apply to AMFI as per the code of conduct. The directors or top management personnel should also clear the NISM certification for the corporation.
- The company would have an ARN code, and its employees would have an Employee Unique Identity Number (EUIN).
- One can apply for the ARN code only with these certifications as required for the particular individual.
Employee Unique Identity Number (EUIN)
It is the number given by the AMFI to the people employed in the mutual fund distribution company/firm. These individuals are usually in the post of relationship manager. They are the ones in direct contact with the investors.
They are also provided an EUIN card that contains information such as name, EUIN ID, validity, etc. If an employee changes his job and shifts to a different distributor, his/her EUIN will remain the same. Only this development should be intimated to the AMFI with this form: EUIN mapping form.
How to Get an ARN Code?
After fulfilling all the required eligibility criteria, the applicant should start the registration process. Simultaneously with this application, the KYD application should also be processed.
Know Your Distributors (KYD)
The Computer Age Management Services Pvt. Ltd. (CAMS) assists the KYD process of AMFI. Ltd. (CAMS). It is the process for verification of all the documents, such as photo PAN card or other photo and address proofs, and the biometric credentials of an individual or entity to know in detail you may visit AMFI.
KYD process is possible physically by visiting any CAMS point of service (CAMS POS) or online on the CAMS website.
The registration process for ARN code is possible both – online and offline as follows:
Online Registration
- First, visit the AMFI website and register your email ID.
- Enter the PAN number.
- Proceed to enter the NISM certification credentials, such as registration ID, certification number, issue date, etc.
- Further, the document uploading window will open. Those should be uploaded as per the required criteria of pixel or size.
- Finally, fees should be paid by the applicant according to the status of the individual, proprietary firm, LLP, banks, etc. The revised fee structure is available here: Registration and renewal fees with GST.
Offline Registration
Offline application is processed at CAMS-POS, along with biometric credentials. The following documents should be submitted along with this application:
- The registration form, as per the category, can be found in the Registration Forms section of the AMFI site.
- Stamp-size colour photographs.
- Photocopy of other documents, such as PAN card, bank proof, etc, should be submitted.
- The demand draft for the payment of fees should be sent in favour of – ‘Association of Mutual Funds in India’.
The validity of ARN registration and certifications like that of NISM is limited and thus should be renewed on the expiry date or six months before, on the following link – RENEWAL FORM.
Renewal Process
- The applicant can visit an online website, upload all updated documents, and pay the fees digitally.
- Applicants can also visit CAM-POS for this process.
- Renewal before the end of validity – further new validity would be provided for the expiry date of the previous application.
- Renewal after the end of validity – new validity will then be provided from a later date.
Bottomline
The ARN code in mutual funds is a crucial detail in identifying an authorised distributor. It is a code given by AMFI to the agents/distributors that acts as a bridge between the investors and the AMCs. It is significant for maintaining a good standard of the intermediary and safeguarding the interest of the investors since the distributors need to adhere to the code of conduct for the distributors.
An individual/corporation can easily apply for the ARN code if the eligibility criteria are fulfilled. Moreover, after obtaining this code, one should be alert about the expiry and renewal process.
Are you ambiguous about how your wealth can be planned or managed? Worry not, Dezerv seeks to help you with this! Connect with us today!
Frequently asked questions
How do I register for an ARN number?
The applicant who has cleared the NISM or CPE examination can apply for the ARN code by visiting the AMFI website and offline at CAMS-POS. The required documents would be certification, photo and address proof, and bank statement etc to know in detail visit AMFI site. Fees can be paid online by making digital payments. Offline, the payment should be made with a demand draft.
How do I renew my ARN number?
The renewal process should be done within six months of the expiration date. This process can be done by visiting the nearest CAMS-POS and submitting the renewal form, attested with different required documents. Also, one can renew it online by visiting the official website of mutual funds. Along with this renewal, applicants are advised to check the validity of the certification. If required, update it before the renewal process.
What documents are needed for ARN code registration?
ARN code can be availed by applying online or offline. In both cases, the following documents should be ready with the applicant:
- The NISM-Series-V or CPE examinations certificate. One should have successfully cleared this exam while applying for the ARN code.
- Original or photocopy of photo and address proof, as per the online or offline process preference.
- Bank Account statement.
- Passport-size photograph of the applicant.
If you are applying offline, the required form should be downloaded or availed from the nearest CAMS-POS and duly filled in while submitting the above-given documents.
Can I apply for ARN without any certification?
No, the ARN code or AMFI Registration code cannot be availed without clearing the examinations and obtaining its completion certificate. Any individual must clear the following exams:
- ‘NISM-Series-V-A: Mutual Funds Distributors Examination’ or
- Continuing Professional Examination (CPE) – senior citizens.
Without these certifications, distributors are not eligible and would not be able to apply for the ARN code.