Regulatory Basics
Key regulatory bodies, certifications, and compliance requirements for MF distribution
Key Regulatory Bodies
| Body | Role | Website |
|---|---|---|
| SEBI (Securities & Exchange Board of India) | Capital markets regulator — oversees MFs, brokers, exchanges | sebi.gov.in |
| AMFI (Association of Mutual Funds in India) | MF industry body — manages ARN registration, distributor guidelines | amfiindia.com |
| NISM (National Institute of Securities Markets) | Certification body established by SEBI — conducts MF distributor exams | nism.ac.in |
NISM Series V-A Certification
The NISM Series V-A: Mutual Fund Distributors exam is mandatory for anyone who wants to distribute mutual funds in India.
| Detail | Info |
|---|---|
| Duration | 2 hours |
| Questions | 100 MCQs |
| Passing Score | 50/100 |
| Fee | ~₹1,500 |
| Validity | 3 years (renewable) |
| Study Material | Free PDF from nism.ac.in |
Renewal Options
You can renew NISM certification without re-exam by completing CPE/eCPE:
- CPE — Classroom-based Continuing Professional Education
- eCPE — Online version (same content, done from anywhere)
- Fee: ~₹500-1,000
- Must be completed within 12 months before certificate expiry
NISM Grandfathering (Special Exemptions)
Certain individuals are exempt from the NISM exam and can directly attend CPE:
Grandfathered by Age:
- Completed 50 years of age as on 31 May 2010
- Must be an associated person (not Principal)
- Document needed: PAN Card only
Grandfathered by Experience:
- 10+ years experience in MF distribution as on 31 May 2010
- Must be an associated person (not Principal)
- Documents: PAN Card + Experience letter from AMC (signed by Chief Manager or higher)
Important: The cutoff date is fixed at 31 May 2010 — it is NOT a rolling date.
Reference: NISM Grandfathering Criteria
ARN (AMFI Registration Number)
ARN is mandatory for mutual fund distribution. Every partner must have their own ARN.
ARN Fee Structure (Effective 1 Oct 2024)
| Category | New Registration | Renewal |
|---|---|---|
| Individual | ₹3,000 + 18% GST = ₹3,540 | ₹1,500 + 18% GST = ₹1,770 |
| Partnership Firm | ₹20,000 + GST | ₹10,000 + GST |
| Pvt Ltd / LLP / OPC | ₹40,000 + GST | ₹20,000 + GST |
| Public Ltd / Banks | ₹4,00,000 + GST | ₹2,00,000 + GST |
Source: AMFI Fee Structure PDF
EUIN (Employee Unique Identification Number)
- Registration: ₹1,500 + GST
- Renewal: ₹750 + GST
- EUIN is mandatory for all MF transactions
ARN Application Process
- Online: mfd.camsonline.com → New ARN Registration
- AMFI Portal: amfiindia.com → Distributor Corner
- Documents needed: PAN, Aadhaar, photo, valid NISM V-A cert, education proof, cancelled cheque
- If employed: NOC from employer needed
- If left employment: Relieving letter suffices
- TAT: 7-15 working days
Wealthy’s Sub-Distributor Model
- Partners are empaneled as sub-distributors under Wealthy
- Wealthy’s ARN = Master ARN
- Partner’s EUIN is mapped under Wealthy’s master ARN
- This mapping ensures every MF transaction is linked to the correct partner
- EUIN is a mandatory field for all mutual fund transactions
GST for Partners
- GST is NOT mandatory for empanelment
- Partners can update their GST number if they have one, otherwise skip
- If partner has GST number, GST on commissions is shown separately
- MF brokerage is inclusive of GST