ARN code refers to a unique code issued to every mutual fund distributor/agent involved in the sale of mutual funds. The intermediaries are required to register with AMFI for selling & marketing of mutual funds. Intermediaries will not be allowed to deal with mutual funds if they fail to register with AMFI and obtain an ARN code. Application for ARN code can be made after getting registered with AMFI and passing the NISM Series-VA Mutual fund distributor examination.

Upon successful verification, intermediaries will receive a photo identity card containing an ARN code, intermediary address, and ARN validity period. The corporate applicants will be issued a registration letter with ARN code, company name, and ARN code validity. Corporate workers, salespersons, or employees will be issued an EUIN card with identical information in accordance with the EUIN.

After understanding what ARN code is, let us delve further into the topic and discuss the purpose of AMFI Registration Number. 

Purpose of ARN Code

To protect the interest of investors, SEBI & AMFI have set guidelines that require the compliance of the intermediaries involved in the activities of selling & marketing of mutual funds. One such important guideline for the intermediaries is to obtain an ARN code after registration with AMFI. This unique number helps AMFI track the transactions conducted by distributors and also maintain a check on their functioning.

The association with AMFI, along with an issued ARN number points out the authenticity of the distributor.

Also, the ARN code is used to monitor the total assets managed by the distributors and to measure their brokerage.

There is an eligibility criteria that a person must fulfil before applying for an ARN code. The next section discusses all these conditions.

Watch the video to get detailed information about ARN Code :

Who Can Apply for an ARN Code?

ARN code is a unique code issued to -

• Individual agents, brokers, advisors, and other intermediaries involved in the selling of mutual funds, who have passed the “NISM-VA Mutual Fund Distributor Certification Exam” and Senior citizens who have attended Continuing Professional Education (CPE) can apply for an ARN. They should be willing to comply with the Code of Conduct and other undertakings as stated in the application.
• Corporations engaged in the selling of mutual funds, who have applied to AMFI and are willing to comply with the code of conduct and other undertakings as noted in the application form.

Now you must be wondering why an ARN code is required in the first place. The next section elaborates on the same.

A photo identity card containing a unique ARN code, address, name, photo, and period of validity of the ARN would be allotted to individuals and senior citizens, while a registration letter bearing a unique ARN code, name of the company, and the validity of the ARN would be issued to Corporate Applicants.

Why is ARN Code Required?

Investing in mutual funds carries an intrinsic risk. Thus, it is critical to pick mutual funds based on your risk appetite and financial goals. Most investors need help in choosing the best mutual fund schemes for them. That’s where mutual fund advisors or distributors come in! However, not just anybody can advise on what mutual funds to pick.  

To safeguard investors and their investments, SEBI and AMFI take several measures, and amongst these is the AMFI Registration Number. All intermediaries marketing or selling mutual funds must clear an exam and get an NISM certification. Moreover, they should also register with the AMFI and get the ARN code. Therefore, this ARN code testifies to the legitimacy of a mutual fund distributor. Only mutual fund distributors or advisors with an ARN code or AMFI Registration Number can sell mutual funds.  

The ARN code also helps track transactions carried out by distributors acting on behalf of investors. This further ensures the protection of investors against any fraud and scams.

ARN Code is the unique identity assigned to the qualified mutual fund's distributor. Having an ARN code will mean that the individual is an AMFI-registered mutual Fund Distributor. It is required for the distributors to track the total assets managed by them and accordingly, the commission they are entitled to.  

Also, To protect the interest of investors, it is necessary that the individual selling or offering mutual funds to them comply with the guidelines & norms of AMFI and the regulatory body SEBI.

Document Required to Get ARN Code

Here is the list of documents required to get an ARN code from AMFI:

• Copy of NISM Certification
• 2 passport-size photographs
• Copy of KYD
• Pan Card
• Cancelled Cheque

Advantages of Having an ARN Code

ARN Code is a very beneficial identity not only for mutual fund distributors but also for the investors. Let’s have a look at the advantages of ARN code for distributors and investors:

Benefits of ARN Code for Mutual Fund Distributors

• It provides every mutual fund distributor, advisor, or agent with an unique identification code.
• The distributor becomes legally eligible to distribute or sell mutual funds to their clients
• It helps distributors and advisors to track the assets of investors under them
• It helps to calculate the brokerage or commission that an advisor is entitled to basis total assets or AUM managed by him

Benefits of ARN Code for Investors

• It protects the interest of the investors as a qualified mutual fund distributor registered with AMFI will be advising them on mutual fund investments.
• It assures investors that a NISM-certified distributor who have knowledge of mutual funds is associated with them.
• If investors are not satisfied with their mutual fund distributor, they can switch to any other mutual fund distributor very easily. Their assets & investments will be switched to other ARN holders. And they no longer need to be associated with their previous distributor.
• AMFI-registered mutual fund distributors also have to adhere to a set of ethical codes established by the Association of Mutual Funds in India. This further safeguards investors and their financial assets.

Every AMFI Registration Number is an alphanumeric code with six components as mentioned below.  

• Alphabetical code
• State code
• Month  
• Year
• Six-digit code generated by the system  
• Checksum digit 

How to apply for the ARN Code?

Apply ARN code Offline

M/s Computer Age Management Services Pvt. has been authorized by AMFI Ltd. (CAMS) to act as a processing agent in support of ARN. For registration, the mutual fund agents need to apply in the prescribed format. The form can be obtained from AMFI’s office or any office of CAMS. One can also download the application form from AMFI’s website.  

Requirements

• Submit the application form along with the KYD acknowledgment to the CAMS office. In case the KYD process is not completed, the applicant needs to submit the ARN form along with the KYD application form.
• A copy of the NISM certification and two passport-size color photographs must be submitted by the applicant.
• The fee for individuals and senior citizens shall be Rs. 3,540, including GST. The fees and document requirements for companies and other entities will be different.

Apply ARN code Online

One can also register online by visiting the Online Registration page. The application form must be submitted along with KYD (Know Your Distributor) by letter or in person with the KYD application form (if KYD has not been completed). 

Then, documents will be examined and, if they are seen in order and if the designated fee has been obtained, a Letter of Registration or a photo ID card will be issued & mailed directly to the candidate.

Renewal of ARN Code

ARN holders / EUIN holders are anticipated to apply for the renewal of ARN / EUIN cards 6 months prior to the expiration of the validity period.

If the request for renewal is made before the expiry date of the ARN / EUIN, then there would be a continuation in the validity period of the ARN / EUIN number. If the renewal application is submitted after the expiry of the ARN / EUIN period, the validity of the renewed ARN / EUIN would start from the date of submission of the renewal application. So first check the status of the EUIN Number, and it would be valid until the date of validity as specified on the NISM Passing Certificate / CPE Certificate.

In the case of Corporate ARN holders, the registration letter will be renewed for a period of 3 years from the date of submission of the renewal application.

How to change the ARN Code for a Mutual Fund?

An investor may not be satisfied with the services and advice being provided by their existing mutual fund distributor and may want to switch to a new advisor. To do so, the investment has to be delinked from the current AMC or distributor, and a request to the AMC must be raised.  

This will result in a change of the ARN code for a mutual fund. Once the alteration is made, units mapped in the name and ARN of the existing distributor will get transferred to a new agent and will be flagged under a new ARN.  

This request can be made using a physical form prescribed by the AMC or a letter requesting the change. The forms are usually available on the AMC website or can be procured from the nearest office.  

In this form, the name of the investors, folio number, name, and ARN (AFMI Registration Number) of the existing distributor or agent, along with the name and ARN of the new agent, must be mentioned. This must be duly signed by all the investment holders.  

Upon receipt of the request, it may take up to 7 to 10 days to reflect the changes. The SEBI has mandated that an investor does not need to provide an NOC (No Objection Certificate) from the previous AMC or distributor. 

Why is ARN Code Important?

ARN Code is important because it helps to identify an individual as an AMFI-registered mutual fund distributor. The unique ID is beneficial for both distributors & investors.  

Mutual Fund Distributors can easily track their assets and investors mapped to them, and accordingly, the commissions they should receive on their AUM.  

The investors can be assured that their money is parked through AMFI-registered MF distributors.  

ARN Code Expiration Validity

The validity of the ARN code is from the date of AMFI Registration to the validity of the NISM Series VA Certification, which was obtained by the mutual fund distributor. After that, ARN will need to be renewed. The validity of the NISM certification is 3 years.  

Frequently Asked Questions - About ARN Code

Q. Who issues an ARN code in India?

A. ARN codes are issued by the AMFI or the Association of Mutual Funds in India, which is a self-regulatory organization that oversees the mutual fund industry in India.

Q. How can a person obtain an ARN code in a mutual fund?

A. To obtain an ARN code, a mutual fund distributor needs to fulfill the eligibility criteria set by AMFI and submit the necessary documents and application forms. This typically includes fulfilling the required educational qualifications, passing the necessary certification exams, and complying with AMFI's code of conduct. You can find all the information on how to apply ARN code above. 

Q. Can an individual have multiple ARN code mutual funds in India?

A. No, an individual cannot have multiple ARN codes for mutual fund distribution. Each mutual fund distributor is assigned a single ARN code, which is unique to them. However, an individual distributor may have multiple branches or offices, each with its own sub-code under the main ARN code.

Q. How is the ARN code used in mutual fund transactions?

A. The ARN code is used to track and record mutual fund transactions associated with a particular distributor. It is included in the transaction records and reports provided by the mutual fund companies, enabling proper commission calculations and distribution.

Q. Is an ARN code transferable?

A. No, a mutual fund ARN code is not transferable. It is specifically assigned to a mutual fund distributor and cannot be transferred or reassigned to another individual or entity.

Q. How can investors verify a mutual fund distributor's ARN code?

A. Investors can verify a mutual fund distributor's ARN code by checking the AMFI website or using the AMFI's online platform. They can enter the distributor's ARN code to validate its authenticity and registration status.

Q. Why is ARN important?

A. ARN is important to ensure the lawful & ethical functioning of the mutual fund industry. The ARN aims to protect the interests of the investors through regular monitoring of the activities of mutual fund intermediaries. 

Q. What is ARN Code?

A. ARN or AMFI Registration Number refers to a unique identity number issued to every mutual fund advisor or distributor. This unique ID number helps to identify the distributor as an AMFI Registered MF Distributor. It is mandatory for an individual to pass the NISM VA- Mutual Fund Distributor Certification and obtain an ARN code before they can start selling or distributing mutual funds to their clients.

Q. What is the minimum age to apply for the ARN Code?

A. The minimum age for obtaining ARN is 18 years.

Q. Can I apply for an ARN without a certification?

A. No, it is necessary to obtain "NISM Series-VA certification" before submitting an application for ARN.

Q. What is the fee for the AMFI Registration Number?

A. It costs just around INR 3000 to obtain an ARN Code and start your career as a registered mutual fund distributor.

Q. Is a NISM certificate mandatory for ARN Code?  

A. Yes, as per the guidelines, you cannot register with an Asset Management Company or get an AMFI Registration Number without passing the NISM Certification exam first.  

Q. How long is the Mutual Fund Distributors Certification Examination?

A. The exam is two hours long and has 100 questions. An applicant must achieve 50 percent marks in order to pass the examination.  

Q. What is the validity or expiry of the NISM Certificate?

A. The NISM Mutual Funds Distribution Certificate is valid for a period of three years from the date of passing the exam.