How to Get an ARN Number in India

If you wish to become a mutual fund distributor, obtaining an ARN is the first essential step. However, this involves understanding the entire process ranging from passing the NISM examination to registering with AMFI and getting empanelled with an AMC. In this blog, learn how to obtain an ARN, the required documents, and the application process.

What Is an ARN Number in Mutual Fund Distribution? 

ARN stands for AMFI Registration Number. It is a registration number issued by AMFI (Association of Mutual Funds in India) to eligible mutual fund distributors. If an individual wishes to start a business distributing mutual fund schemes, they are required to obtain ARN registration in accordance with the applicable regulations.

Why is the ARN number important?

The ARN number helps establish the identity of a mutual fund distributor. Its role can be understood in three simple ways:

• Distributor Identity: It indicates that the distributor has completed the prescribed registration process.

• Mutual Fund Distribution: After completing the necessary empanelment process with the respective AMC, the distributor can distribute its schemes.

• Regulatory Compliance: ARN registration is part of the applicable rules and procedures governing mutual fund distribution.

Please note that merely passing the NISM examination does not grant an ARN; a separate registration process must be completed for this.

What is the difference between ARN and EUIN?

Both ARN and EUIN are identification numbers associated with mutual fund distribution, but they serve different purposes.

Example: Suppose an individual engages in mutual fund distribution through their firm. The firm may hold an ARN, while the qualified employee interacting with the investor can be identified by an EUIN.

Therefore, ARN and EUIN should not be considered substitutes for each other. The requirement for both depends on the category of the applicant and the applicable AMFI regulations.

Eligibility Criteria for ARN Registration 

Before applying for an ARN, it is important to determine whether the applicant intends to start mutual fund distribution as an individual or through a company or firm. There are distinct requirements for each.

Eligibility for Individual Mutual Fund Distributors

If an individual wishes to start a mutual fund distribution business in their own name, they must fulfill the conditions listed below.

Can a company or firm also apply for an ARN?

Yes, eligible companies, LLPs, partnership firms, and other qualified entities can apply for an ARN in their own name. However, merely registering the company does not fulfill the eligibility criteria for an ARN; the entity must also meet the conditions and documentation requirements prescribed by AMFI.

Example: If an individual wishes to start a mutual fund distribution business on their own, they can apply for an Individual ARN. However, if they wish to start the business under the name of their private limited company, they must arrange for the company's ARN as well as the registration of a qualified employee and an EUIN.

How to Get an ARN Number Step-by-Step 

Merely passing the NISM examination is not enough to obtain an ARN; one must subsequently complete the registration process prescribed by AMFI. Let us understand the entire procedure in simple terms through the steps outlined below.

Step 1: Register for the NISM Series V-A Exam

To become a mutual fund distributor, first understand the requirements for the NISM-Series-V-A: Mutual Fund Distributors Certification Examination and register for the exam.

Visit the official NISM website to create an account, select an available exam date and test center, and pay the prescribed fee.

Key information regarding the exam is provided below.

Step 2: Pass the exam and obtain the NISM Certificate

Obtaining the NISM certificate after passing the exam is the next essential step. According to NISM, providing PAN details in the exam registration record is mandatory for the issuance of the certificate. If PAN details have not been provided, they can be updated by contacting the concerned test administrator.

Step 3: Visit the official AMFI website

After obtaining the NISM certificate, you need to apply for ARN registration with AMFI.

To do this, open the AMFI Distributor Corner and navigate to the online registration option for ARN/EUIN.

• Select the online registration option.

• Choose the correct category Individual or Non-Individual.

• Read the instructions provided on the portal.

• Keep the necessary information and documents ready for the application.

Step 4: Fill out the ARN application form

Now, enter the information requested in the online application. Individual applicants must provide their own details, whereas applications from companies or firms may also require details related to the organization.

Step 5: Complete KYD and Identity Verification

KYD stands for 'Know Your Distributor'. It is a mandatory process to be completed during new ARN registration with AMFI.

As per current AMFI guidelines, the prescribed identity verification must be completed via PAN and Aadhaar during the online application process. Stipulated conditions regarding valid and verified KYC also apply to eligible applicants.

Step 6: Pay the ARN Registration Fee

After completing the form and the prescribed verification process, pay the applicable registration fee. Please note that the NISM examination fee and the ARN registration fee are separate.

This fee is based on the official list of individual ARNs available. Fees may differ for companies, LLPs, partnership firms, and other categories.

Step 7: Check Application Status and Obtain ARN

The registration process is reviewed after the application is submitted, necessary verifications are completed, and the fee is received. An ARN is issued if the application is found to be in order.

Common Mistakes to Avoid When Applying for an ARN 

Even minor errors while applying for an ARN can cause issues during verification. Therefore, it is important to understand these common mistakes before submitting your application.

Not checking the validity of the NISM Certificate

Before applying for an ARN, ensure that your NISM Series V-A certificate is valid and meets the prescribed eligibility criteria. If the certificate has expired, find out the applicable renewal process.

Errors in PAN and personal details

Entering incorrect details regarding your name, PAN, or other personal information can lead to identity verification issues. Cross-check all details against official documents before submitting the form.

Selecting the wrong applicant category

Requirements differ for Individual and Non-Individual ARNs. If applying on behalf of a company or firm, understand the specific procedure for an entity rather than opting for an Individual ARN.

Ignoring KYD and KYC requirements

Merely filling out the application form is not enough; the applicant must also fulfill applicable KYD, identity verification, and KYC requirements. If any information does not match, rectify it before proceeding with the application.

Confusing ARN registration fees with exam fees

NISM exam fees and AMFI registration fees are distinct. Before applying, check the official fee schedule for the ARN fees and taxes applicable to your specific category.

Not checking emails after application submission

Updates regarding the application or requests for additional information may be sent to the email address provided during registration. Check your email regularly and contact AMFI/CAMS through official channels if necessary.

Forgetting about AMC empanelment after receiving the ARN

Obtaining an ARN and completing empanelment with a mutual fund company are separate processes. Do not assume you have authorization to distribute all mutual fund products of a specific AMC without completing that AMC's required empanelment process.

What to Do After Receiving Your ARN Number 

After obtaining the ARN, the next step is to prepare for launching your mutual fund distribution business. This requires establishing proper systems for AMC empanelment, client onboarding, and business management.

Complete the AMC Empanelment Process

Obtaining an ARN does not automatically grant permission to distribute schemes from all mutual fund companies. Before starting the business, it is essential to complete the empanelment process with the respective Asset Management Companies (AMCs). Only then can you distribute that AMC's schemes in accordance with the prescribed regulations.

Plan to Acquire New Clients

Initially, plan to reach out to your acquaintances, professional network, and potential investors. When interacting with clients, understand their needs, investment horizon, and risk appetite. Focus on building long-term, trustworthy relationships rather than merely securing investments.

Grow Your MFD Business with Rupeezy

Acquiring clients, handling marketing, and managing day-to-day operations can be challenging for new mutual fund distributors. Rupeezy offers various facilities and support to help MFDs grow their business.

Benefit of 100% Commission Sharing

According to Rupeezy's published information, new MFDs receive the benefit of 100% commission sharing for the first year. Subject to specific conditions, this period can be extended to two years if two new clients are onboarded within two months of joining. To qualify, each client must have a minimum SIP of ?1,500 or a lump sum investment of ?5,000. Please ensure you check the applicable rules and offer terms.

ARN Reward and Referral Benefits

Under its published offers, Rupeezy also provides an ARN reward of ?5,000 and benefits of up to ?1,000 for eligible MFD referrals. Eligibility criteria and terms and conditions apply to these offers; therefore, it is essential to review the details of the current offer before applying.

Marketing and Training Support

New MFDs can access resources such as posters, visiting cards, and digital creatives to market their business. Rupeezy also provides online webinars and training sessions that help enhance knowledge about mutual funds and improve client interactions.

Utilize Business Management Tools

Rupeezy’s MFD ecosystem offers a range of tools for client and portfolio management:

• CRM Web Platform and Partner App: To organize client- and business-related activities.

• Client App: To provide investment-related features to clients.

• Portfolio Management Tools: To view portfolio and investment details.

• MF Lab and Smart Explore: To access mutual fund information and utilize available tools.

• MCP: To use AI tools like ChatGPT and Claude through available integrations.

The objective of these features is to streamline the day-to-day operations of MFDs and simplify client servicing.

Conclusion

Obtaining an ARN is a crucial step toward becoming a mutual fund distributor. The process involves passing the NISM examination, completing AMFI registration, and undergoing the necessary verification. Once you receive your ARN, focus on getting empanelled with the relevant AMCs to onboard clients and grow your business. Platforms like Rupeezy can help streamline marketing, training, and client management.

FAQs

Q1. What is an ARN number in mutual funds?

An ARN number is a registration number issued by AMFI to eligible mutual fund distributors, serving as a means of identification.

Q2. How can I get an ARN number in India?

First, pass the NISM Series V-A examination or fulfill the applicable CPE requirements. Then, apply according to the procedure prescribed by AMFI.

Q3. What is the minimum age for ARN registration?

For an individual ARN, the applicant must be at least 18 years old.

Q4. What is the NISM Series V-A exam fee?

The fee for the NISM Series V-A examination is Rs. 1,500. Please check the current fee on the official NISM website before applying.

Q5. What is the ARN registration fee?

The ARN registration fee depends on the applicant's category. Please refer to the official fee list on the AMFI website before applying.