3 min
02-August-2024
ARN generally stands for Acquirer Reference Number. ARNs are distinctive 23-digit numbers and are usually known for their importance as they are connected to online Mastercard and Visa credit and debit card transactions. In terms of mutual funds, an ARN is also a unique identifying number, but it stands for AMFI Registration Number in this case.
The ARN as it relates to mutual funds, is a specific identification number that is allocated to individuals who are registered with the AMFI or the Association of Mutual Funds in India. Such individuals are those who advise you on specific mutual funds to invest in and help you execute your investment. It is important to know how to get an ARN number if you are an investor or a person who wishes to become an official distributor. This article delves into how to get an ARN and guides you in related aspects.
ARN stands for the Association of Mutual Funds in India Registration Number. This is a unique identifier that is assigned to mutual fund distributors or mutual fund experts, designating them as official entities or individuals permitted to deal with aspects of mutual fund investment. According to the Association of Mutual Funds in India (AMFI) and the Securities and Exchange Board of India (SEBI), it is a mandatory requirement for all intermediaries involved in the marketing and selling of mutual fund schemes to possess an ARN. This is chiefly to safeguard investor interests and comply with regulatory practices in the mutual fund investment arena. Once you know what an ARN is, you can move ahead with how to get an AMFI registration number.
It is important to take note of the fact that your ARN is valid for a limited period and has to be renewed at an appropriate time. You must apply for renewal of your ARN before the date of expiry of your current ARN. Furthermore, once you have an ARN, you will have to register yourself with each asset management company from which you want to sell mutual fund schemes.
Needless to say, the ARN holds great benefits, whether you are an investor or are planning to become a mutual fund expert or mutual fund distributor. An ARN is required as it gives you credibility if you are entering the business of selling mutual funds, assuring clients that they may consider your advice and expertise with such investments.
Essential tools for mutual fund investors
The ARN as it relates to mutual funds, is a specific identification number that is allocated to individuals who are registered with the AMFI or the Association of Mutual Funds in India. Such individuals are those who advise you on specific mutual funds to invest in and help you execute your investment. It is important to know how to get an ARN number if you are an investor or a person who wishes to become an official distributor. This article delves into how to get an ARN and guides you in related aspects.
What is ARN number in mutual funds?
If a person wishes to become a mutual fund distributor, dealing with the selling of mutual fund schemes to investors, they have to acquire a certain registration credential that is issued by the Association of Mutual Funds in India or the AMFI. Before you learn how to get an ARN number, which is proof of your credentials to assist investors in mutual fund investment and help them execute the processes to do so, you must know what the ARN is.ARN stands for the Association of Mutual Funds in India Registration Number. This is a unique identifier that is assigned to mutual fund distributors or mutual fund experts, designating them as official entities or individuals permitted to deal with aspects of mutual fund investment. According to the Association of Mutual Funds in India (AMFI) and the Securities and Exchange Board of India (SEBI), it is a mandatory requirement for all intermediaries involved in the marketing and selling of mutual fund schemes to possess an ARN. This is chiefly to safeguard investor interests and comply with regulatory practices in the mutual fund investment arena. Once you know what an ARN is, you can move ahead with how to get an AMFI registration number.
Key takeaways
- Having an ARN is a mandatory requirement for all those who want to work as mutual fund distributors and any other intermediaries dealing with the marketing and selling of mutual fund investments.
- The ARN may be assigned to an individual, platform, or entity, such as the Bajaj Finserv Mutual Fund Platform, that deals with all aspects of the marketing, selling, and advisory activities involving mutual fund schemes in India.
- To acquire an ARN in India, individuals must pass an exam that is conducted by the National Institute of Securities Markets (NISM) and then undergo a registration process with the Association of Mutual Funds in India.
Who can apply for ARN number?
The process of how to get an ARN number may be simple, but before you apply for an ARN, you should know who is eligible to get an ARN. As per the regulations of AMFI and SEBI, an ARN candidate’s minimum age should be 18 years. Furthermore, the candidate applying for an ARN should have passed the NISM examination and must follow the code of conduct and other relevant regulations. The following individuals are eligible to apply for an ARN number:- Brokers, intermediaries, or agents
- Those senior citizens who have completed their CPE or Continuing Professional Education
- Corporations, like AMCs, that are engaged in the professional business of mutual fund investment
How to apply for an ARN code online?
If you want to know how to get an ARN number, you just have to apply for this in a smooth online process through a few simple steps. Here are the steps:Step 1: Confirm eligibility
The first step to applying for an ARN code online is to check whether you are eligible to do so. Once you have confirmed your eligibility criteria, you can go ahead with the next step.Step 2: Register with the AMFI
Once you have met the eligibility criteria, you can register with the AMFI by filling out an application form on their website. You will have to provide your details, as well as your NISM certification number.Step 3: Upload your documents
After you complete the online application, you can upload your documents. These include your proof of identity, passport-size photographs, NISM certification, and any other required documents.Step 4: Make payment
Once your documents are submitted, you will have to pay a registration fee online. Fees are based on the kind of registration you opt for.Step 5: Await approval
Getting an AMFI registration number is an easy process online, but it requires some patience on your part. The AMFI will review your application and then approve it.Step 6: Receipt of the ARN
Upon approval of your application, the AMFI will send you your ARN via email. You will also receive a hard copy of your ARN via the postal service.It is important to take note of the fact that your ARN is valid for a limited period and has to be renewed at an appropriate time. You must apply for renewal of your ARN before the date of expiry of your current ARN. Furthermore, once you have an ARN, you will have to register yourself with each asset management company from which you want to sell mutual fund schemes.
How to apply for an ARN code offline?
Now that you know how to get an ARN number for a mutual fund online, you should know how you can get an ARN number offline too, if you wish to do so. Here are the steps:Step 1: Apply at the CAMS office
The application for the ARN can be obtained from any Computer Age Management Services Pvt. Ltd. (CAMS) office. The AMFI has designated these offices to register applicants and provide ARNs. Fill in the application form.Step 2: Submit the application
After you have filled out the form, you can submit this at the CAMS office, along with the Know Your Distributor acknowledgement document.Step 3: Submit supporting documents
Applicants must submit their identity proof and passport-sized photographs with their application. A copy of the NISM Examination certificate must also be submitted.Step 4: Pay the fee
Applicants must pay registration fees and then await approval of their application. Once they get approval, an ARN will be sent by post and online via email.Requirements for ARN number in mutual funds
Knowing how to get an ARN number is important for you to become a mutual fund distributor and be officially registered to deal with aspects of mutual fund investment for your clients. Nonetheless, you may be wondering why an ARN number is required in mutual funds, and how this benefits you. Requirements for an ARN number prove to be beneficial to both investors and mutual fund distributors. Here is how:1. Investor benefits
- Mutual fund distributors that are registered with an official body like the AMFI have credibility as they have to adhere to certain ethical standards of practice. This assures investors that they are being advised appropriately. Thus, investor interests are safeguarded.
- While investing in mutual funds, you can switch to any other mutual fund distributor if you are not satisfied with your current one, as ARN numbers make the process seamless and quick.
2. Mutual fund distributors
- The requirement of an ARN is paramount to establishing a unique identifier for a mutual fund distributor, agent, or mutual fund advisor.
- The ARN number makes the mutual fund agent or distributor eligible to sell mutual funds officially and this enhances their credibility too.
Documents required for ARN number in mutual funds
While you are learning how to get an ARN number, you should know about the documents that you require to submit with your application for an ARN number. To get an ARN, applicants have to provide the following:- A photo identity document like a PAN card or Aadhaar card
- The applicant’s NISM examination passing certificate
- The applicant’s proof of having a bank account
- Two recent passport-sized photographs
Conclusion
Your ARN has a validity of three years, after which it must be renewed. Holders of an ARN should consider renewing their ARN document before the date of expiry to avoid any delay in obtaining a valid ARN.Needless to say, the ARN holds great benefits, whether you are an investor or are planning to become a mutual fund expert or mutual fund distributor. An ARN is required as it gives you credibility if you are entering the business of selling mutual funds, assuring clients that they may consider your advice and expertise with such investments.
Essential tools for mutual fund investors
