The association of mutual funds in India (AMFI) is governed by the SEBI. It is a non-profit government agency designed to improve the mutual fund sector. This article deals with what AMFI is, the role it plays, the AMFI registration number or ARN, and the AMFI exam.
What is AMFI?
AMCs and fund houses in India formed the Association of Mutual Funds in India (AMFI), a self-regulatory organization. AMFI should be your next port of call if your fund house isn’t responding to your query about a mutual fund investment satisfactorily. It is a non-profit government agency that falls under SEBI’s regulatory purview.
The Association of Mutual Funds in India is referred to by the acronym AMFI. On August 22, 1995, AMFI was established with the goals of advancing the mutual fund sector and safeguarding investors from any loss. The protection of mutual funds and unitholder interests is the mission of AMFI. It makes an effort to improve the mutual fund sector along ethical, professional, and healthy lines. A government agency with non-profit status, AMFI is governed by SEBI (Securities and Exchange Board of India). AMFI has around 44 asset management firms registered with SEBI as members.
Your investment process is incredibly straightforward and transparent under SEBI regulation. As a result of the industry’s stringent ethical oversight provided by AMFI, investing in mutual funds is simple. Agents, fund houses, advisers, and trustees should all register with AMFI in order to ensure openness.
What Role does AMFI Play?
- Describes the moral and consistent professional standards that apply to all mutual fund operations that are part of the association
- Encourages participants to uphold moral standards and laws and encourages members to invest.
- Ensures that all entities involved in the capital market or financial services areas, including AMCs, agents, distributors, advisers, and other entities, abide by their rules. establishes connections with SEBI and abides by their mutual fund rules
- Speaks on behalf of the Finance Ministry, the RBI, and SEBI in all matters pertaining to the sector
- Makes safe mutual fund investments more widely known across the nation
- Disseminates knowledge about the mutual fund industry and conducts analysis and training on various funds
- Monitoring everyone’s adherence to the code of conduct and enforcing disciplinary measures as necessary
- A fund manager or a fund company can be accused of wrongdoing by investors by contacting AMFI.
- Ensures that asset management firms’ and investors’ interests are protected.
AMFI Registration Number or ARN
Each mutual fund agent, distributor, and broker is given an individual number known as an AMFI Registration Number (ARN). One is only available to individuals who pass the NISM Certification exam. The CPE (Continuing Professional Education) test must be passed if you are a senior citizen in order to qualify for the same. A mutual fund cannot be sold or even recommended without this number. Companies and people involved in mutual fund trading receive ARN ID cards from AMFI. Keep in mind that the NISM certificate has a 3-year expiration date. The name of the AMC, cardholder’s photo, ARN number, company location, and validity are all included (3 years). Consequently, cross-checking is simpler for investors.
ARN registration and renewal can be done online:
- If you link your Aadhaar and registered mobile number.
- Apply manually if you haven’t already done so after providing your Aadhar information.
- Use online banking to pay the ARN registration or renewal charge.
- Your NISM passing certificate can be imported immediately into CAMS, eliminating the requirement to send it in with your registration or renewal.
- You quickly receive a new ARN license when they have verified the documentation you supplied to the AMFI portal.
Instructions for registering or renewing an ARN offline:
- Access the official AMFI portal and log in with your credentials.
- The password is given to your email via CAMS and the ARN number will serve as the user id. Your personal information is obtained directly from NISM IV by AMFI upon authentication.
- Pay the fee online (net banking, debit/credit card, etc.) or in person, at the fund house once you have successfully completed the NISM certification/CPE.
- A quick ARN/EUIN registration or renewal takes place.
Until a couple of years ago, AMFI used to provide the exam for the certification of Mutual Fund Distributors. On June 1st, 2010, the AMFI test was stopped. The exam used to be given by the Association of Mutual Funds in India, which also awarded certificates to those who passed it prior to June 2010. SEBI moved the AMFI test to the National Institute of Securities Markets as part of this strategy (NISM). Because of this, the decision was made. SEBI sought to unify the certification of all financial products under the NISM. The AMFI test is now referred to as NISM-Series-V-A: (5A) Mutual Fund Distributors Certification Exam.
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It stands for the association of mutual funds in India.
AMFI was established on August 22, 1995.
AMFI was established with the goals of advancing the mutual fund sector and safeguarding investors from any loss. The protection of mutual fund and unitholder interests is the mission of AMFI. It makes an effort to improve the mutual fund sector along ethical, professional, and healthy lines.
Each mutual fund agent, distributor, and broker is given an individual number known as an AMFI Registration Number (ARN).