What is an AMFI Registration Number (ARN)? A Step-by-Step Guide to Becoming an MFD

The Indian Mutual Fund industry is witnessing a seismic shift. With monthly SIP inflows hitting record highs of over ₹20,000 crore, more Indians are moving from traditional savings to market-linked wealth creation.

However, you cannot simply start selling these financial products. To enter this booming industry legally, you need the ARN (AMFI Registration Number). Think of it as your “Golden Ticket”—it is the only way to earn commissions and build a legitimate career in wealth management.

What is an ARN Number?

An ARN Number is a unique identification code issued by the Association of Mutual Funds in India (AMFI) to intermediaries like distributors, agents, and brokers.

Why does it exist?

To Protect Investors: It ensures that only certified individuals with a clean record can handle public money.
To Ensure Ethics: All ARN holders must follow a strict SEBI-mandated Code of Conduct.
To Track Commissions: It acts as a tracking ID so Asset Management Companies (AMCs) know exactly which distributor to pay for a specific investment.

Eligibility: Who Can Apply for an ARN?

Before you start the process, ensure you meet the basic eligibility criteria defined by AMFI:

Age: You must be at least 18 years of age.
Entity Type: Individuals, Proprietorships, Partnerships, and Corporates (Banks/NBFCs) can all apply.
Clean Record: You must not have been convicted of any economic offenses or fraudulent activities.

Who needs an ARN vs. an EUIN?

ARN: For the Distributor/Agency. This is the code used on application forms to claim commission.
EUIN (Employee Unique Identification Number): If you are an employee of a bank or brokerage interacting with clients, you need an EUIN. This prevents "mis-selling" by ensuring the specific person giving advice is identifiable, even if they switch companies.

Step-by-Step Process to Become a Mutual Fund Distributor (MFD)

Step 1: Pass the NISM Series V-A Exam

You must clear the NISM-Series-V-A: Mutual Fund Distributors Certification Examination.

Exam Fee: ₹1,500 + GST.
Passing Marks: . 50% (There is no negative marking)

Step 2: Complete Know Your Distributor (KYD)

KYD is a specialized verification process for distributors. It involves:

Step 3: Apply for ARN (Online/Offline)

You can apply online via the AMFI Website or visit a CAMS POS (Point of Service). The online route is recommended as it is faster and allows for instant e-KYC.

Step 4: Fee Payment

Below are the updated fees for 2024–2025. Note that renewal is significantly cheaper than fresh registration.

Entity Type Fresh Registration Fee Renewal Fee
Individuals / Proprietors ₹1,500 + GST ₹750 + GST
Corporates (Large Scale) ₹20,000 + GST ₹10,000 + GST
EUIN (Employees) ₹500 + GST ₹250 + GST

Documents Required Checklist

Keep these documents ready to ensure your application isn’t rejected:

PAN Card (Must be linked with Aadhaar).
Aadhaar Card (For e-KYC).
Cancelled Cheque (This bank account will be linked for your commission payouts).
Two Passport-size Photos.

Validity and the "Refresher" Process

An ARN is valid for 3 years.

Important Value-Add: You do not have to retake the NISM exam every three years. You can renew your ARN by attending a Continuing Professional Education (CPE) Refresher Course. This is a one-day training session that updates you on new SEBI regulations and automatically extends your license.

For Investors: How to Verify an ARN Number?

If you are an investor, you should never invest through someone who cannot produce a valid ARN card. You can verify their authenticity by:

  1. Visiting the AMFI Website under the ‘Distributor’ section.
  2. Entering the ARN number to check the name, validity, and EUIN status.
  3. Ensuring the ARN Card has a valid expiry date.

Common Mistakes to Avoid

Ignoring the Grace Period: Apply for renewal 6 months before expiry. If your ARN expires, AMCs will stop paying your trail commissions immediately.
Linking Issues: If your PAN is not linked to your Aadhaar, AMFI will put your application on hold.

Why Having an ARN is a Career Game-Changer

  1. Passive Income: You earn trail commissions for as long as your client stays invested.
  2. Professional Credibility: It gives you the “Registered” tag, which is essential for building trust in the financial sector.
  3. Direct Support: You get direct access to AMC portals (like HDFC, ICICI, SBI) for seamless transaction processing.

Conclusion

Becoming a Mutual Fund Distributor is one of the most sustainable career paths in India’s growing economy. While the NISM exam and ARN application require an initial investment of time and fees, the long-term potential for building a high-revenue wealth management business is immense.

Ready to start your journey?

Check out our Mutual Fund Distributor to ace your exam on the first attempt

Frequently Asked Questions (FAQs)

Q: Can I sell mutual funds without an ARN?

No. It is legally mandatory under SEBI regulations. Selling without an ARN can lead to a permanent ban and legal action.

If you have your NISM certificate, the online ARN generation usually takes 7–10 working days.

 There is no strict degree requirement, but a basic understanding of mathematics and finance is necessary to pass the NISM V-A exam.

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