The Association of Mutual Funds in India (Amfi) has reduced ARN registration and renewal fees for most distributor forms, including individual distributors, by half, effective May 1.
The change is expected to encourage new and young people across the country to reach out to a large number of small savers, especially in tier-II and tier-III cities and towns, to invest their money in mutual funds.
What is ARN Code?
The AMFI Registration Number (ARN) is a one-of-a-kind code assigned to each mutual fund seller, broker, agent, or intermediary. SEBI has defined the guidelines in order to ensure that distributors adhere to the undertakings specified in the application form.
SEBI and AMFI have established certain guidelines and terms that must be followed in order to protect the interests of the investor and all parties involved in the process of buying and selling mutual funds.
What is a EUIN?
Mutual Funds must establish a ‘Unique Identity Number’ for each employee of the distributor who provides advice for the selling of any mutual fund scheme. This is in addition to the distributor’s AMFI Registration Number (ARN). The acronym for this latest unique number is EUIN.
Individuals and proprietorship firms have had their ARN registration and renewal fees reduced by 50% to Rs1,500 and Rs750, respectively, while post offices and microfinance institutions (MFIs) have had their registration and renewal fees reduced by 50% to Rs7,500 and Rs3,750, respectively.
Employees’ EUIN (Employee Unique Identification Number) registration and renewal fees have also been reduced to Rs 500 from Rs 1,500 and Rs 750, respectively, by Amfi.