ARN Code in Mutual Fund

Everyone has heard the commercial line, “mutual fund investments are subject to market risk.” But one can still take greater precautions to lower the risk. Therefore, it is the intermediary’s responsibility to inform and upskill the investor about the potential risk factors. The interests of the involved parties in the transaction will be protected this way.

The Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds of India (AMFI) have put forward several initiatives to protect investors. One such step entails requiring distributors to get an ARN code. The ARN full form is AMFI Registration Number. If you are planning to invest your hard-earned money in Mutual Funds, you must get acquainted with ‘what is ARN number’, the ARN renewal online process, its benefits, and much more.

What is ARN Code?

ARN Number or ARN Code is a unique application reference code that is allotted to a qualified mutual fund distributor. By qualification, we mean the distributor must clear the National Institute of Securities Markets (NISM) certification. Mutual fund experts can use the ARN code to transact in different mutual fund schemes. Mutual fund sales and dealing are only permitted by fund distributors or experts who have been given an ARN (Application Reference Number).

Why is ARN Code Required?

Mutual funds provide investors with the opportunity to increase their wealth significantly. However, we must pay attention to the fact that they can also deplete an investor’s life savings and are highly volatile. Therefore, the regulatory authority must control every facet of this transaction. In this case, SEBI looks after every mutual fund transaction.

The Association of Mutual Funds in India initiated the need for an ARN number. It came into force to provide intermediaries with a standardized qualification to sell and market mutual funds. SEBI agreed with the requirement of quality as well as trustworthy intermediaries/ distributors in the mutual fund sector and mandated the requirement of the ARN number.

The regulatory authorities can easily track transactions made by the distributors in the interest of the investors. Additionally, it will help in upholding mutual fund investing standards. It will support India’s efforts to develop a robust mutual fund sector.

Who Can Get ARN Code?

ARN code is allotted to only some applicants. There are set eligibility criteria, and only the eligible intermediaries can get an ARN number.

• All the MF brokers, mediators, and agents can secure the ARN Code. The same will be allotted when they complete their certification from NISM.
• Individual mutual fund intermediaries are provided with a photo ID Card consisting of the distinct ARN Code, residence address, and ARN validity period.
• Corporate organizations and individuals get a letter of registration. This letter comprises the allocated ARN code, individuals, or corporate name along with the ARN validity period.
• The corporate employees who apply for an ARN number are provided with the Employee Unique Identification Number (EUIN) Card, which encapsulates similar details.
• Senior citizens who have Continuing Professional Education (CPE).

Format of ARN Code

The ARN code or AMFI Registration Number is an alphanumeric code. This alphanumeric code consists of six components.

For example:

BB 08 10 22 123456 8

In this ARN Code,

BB is the Alphabetical code

08 represents the State code

10 is the Month

22 denotes the Year

123456 represents the 6-digit system-generated code

8 is the checksum digit

What are the Benefits of the ARN Code?

ARN Code offers the following benefits:

• Distributing ARN codes to intermediaries ensures the entity’s legitimacy and identity. An intermediary can be an individual agent, a broker, a mediator, or a distributor.
• Since these intermediaries are subject to SEBI regulation and are required to abide by a code of conduct, investors are protected from cases of fraud and scams.
• The distributor’s and the mediator’s investments are tracked with the ARN code.
• ARN numbers help in computing the brokerage of the middleman.

Documents Required to Get ARN Code

Documentation is the key to getting work done; the same applies to ARN code. You need to submit the below-depicted documents to get an ARN code:

• NISM Certificate (Copy)
• Valid Aadhaar Card (Copy)
• Pan Card (Copy)
• Bank Account details and proof such as passbook
• Passport size photographs (2)

Now that you know the eligibility criteria and required documents to get an ARN code, you must understand the process to apply for the ARN code.

How to Apply for ARN Code?

Before applying for an ARN code, you must secure the NISM or CPE certificate based on your case scenario. Once you obtain the required certificate, apply for the ARN Number via the online or offline procedure. To make it easier for you, we have detailed each process.

Online Mode

If you wish to apply for ARN Number online, follow the depicted steps:

1. Visit the official CAMS website.
2. Get registered by providing the asked details.
3. Now download the ARN code application form and submit the same with Know Your Distributor (KYD).
4. In addition to digital submission, you will have to submit the KYD application form in person.
5. Upload the required documents along with the filled application form.
6. Pay the associated charges to get an ARN Code.

After evaluating your application, you will get the ‘Letter of registration’ and the Photo ID. You will receive these on your registered email ID.

Offline Mode

If you want to avoid the online procedure, you can perform the same offline too. Here’s what you have to do:

1. Make an in-person visit to the nearest CAMS office and collect the application form.
2. Fill out the ARN application form and attach the necessary documents with the same.
3. Now, submit the associated fees to get an ARN Code.

After evaluation, the authority will send the Letter of Registration and photo ID to your registered address.

Renewal of ARN Number

ARN code comes with a validity of three years from the issuance date. Once the tenure has expired, you can renew your ARN number by submitting an online application form.

You have to do this six months before the expiry date. If you decide to submit the ARN renewal application before six months, the validity of the code will continue for the remaining tenure. However, if you apply for the renewal after the expiry of valid ARN tenure, the code will be valid from the submission date of the application.

How to Renew ARN Number?

Follow the depicted process to renew the ARN number:

1. Visit the official CAMS or AMFI portal and download the ARN renewal application form.
2. Now, fill out the renewal application form, and attach the required documents, such as valid ID proof and residence proof.
3. Submit the requisite fees for the code renewal, and you are done with your part.

The authority will evaluate your application and process the same in the minimal possible time.

ARN Code or ARN Number is the most crucial requirement for intermediaries associated with mutual fund distribution. In addition to providing a unique identity, the ARN code assures the investor’s interest and safety.

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