What is an ARN Number in Mutual Funds?

An ARN (AMFI Registration Number) is a distinct identifier assigned to distributors or professionals in the mutual fund sector. It is essential for conducting transactions in different fund schemes. The Association of Mutual Funds in India (AMFI) mandates that all entities involved in marketing and selling mutual funds possess an ARN. This requirement aims to protect the investors' interests and ensure the integrity of related transactions. Furthermore, the ARN enables tracking of previous investments made by intermediaries for investors. To obtain an ARN, intermediaries must pass a test by the National Institute of Securities Markets (NISM) and register with AMFI.

Who is Eligible to Apply for an ARN Number?

According to SEBI and AMFI guidelines, applicants for an ARN must be at least 18 years old and have cleared the NISM certification examination while complying with the conduct code and other requisite guidelines. Eligible entities for an ARN include:

• Intermediaries, brokers, or agents
• Senior citizens who have completed Continuing Professional Education (CPE)
• Corporations dealing in mutual funds

Documents Required for Obtaining an ARN Number

Applicants need to submit these documents to acquire an ARN:

• NISM certificate
• Photo identification like Aadhaar or PAN card
• Proof of bank account
• Two passport-sized photos

How to Obtain an ARN Code?

AMFI has tasked Computer Age Management Services Pvt. Ltd. (CAMS) with processing registrations and issuing ARN codes. Applications can be filed online or offline. Here’s how:

• Complete and submit the Application Form for AMFI Registration Number (ARN), accessible online or at AMFI and CAMS offices.
• Arkents need to provide the application form and Know Your Distributor (KYD) acknowledgment at CAMS offices. Unfinished KYD processes require a KYD application alongside the ARN form.
• Submit two color passport-size photos and a copy of the NISM certification.
• Individuals and sole proprietorships pay a fee of Rs. 1,770, including GST. Different criteria apply for other entities, so refer to AMFI for details.

Benefits of Having an ARN Code

For Investors:

• Ensures investor protection as AMFI-registered distributors offer investment guidance.
• Easy switching between distributors, with investments transferable to other ARN holders without remaining stuck with the current distributor.
• Distributors adhere to ethical standards set by AMFI, protecting investors’ assets.
• Guarantees the distributor has NISM certification and mutual fund expertise.
• Helps assess brokerage fees by intermediaries.

For Mutual Fund Distributors:

• Assigns a unique identification code to distributors, advisors, or agents.
• Legal authorization to sell mutual funds to clients.

Renewal Process of ARN Number

An ARN is valid for three years. ARN/EUIN holders should renew their registration six months before expiration. Early renewal ensures the continuation of validity, while delayed requests prolong validity from the submission date. Corporate ARN holders’ registration extends three more years from the renewal application's date of submission.