- What is AMFI?
- Role of AMFI in Mutual Funds?
- AMFI Objectives:
- AMFI Registration Number (ARN)
- Why Should Investors Know About the ARN?
- What is the Code of Ethics?
- How to Register or Renew the AMFI Registration Number (ARN)?
- Rights of AMFI
- Committees of AMFI
- Members of Association of Mutual Funds in India
- Frequently Asked Questions
What is AMFI?
AMFI, The Association of Mutual Funds in India, a non-profit government organization. SEBI regulates it primarily. Further, it dedicates itself to maintaining a Mutual Fund industry that is run across ethical lines.
It maintains a high level of standard in its operation. Additionally, it ensures that investors are informed about mutual funds. These data flows in the form of press releases, expense ratio, ETF’s, etc. AMFI keeps investors informed particularly about news related to mutual funds of India.
Role of AMFI in Mutual Funds?
AMFI has always plays a crucial role in maintaining sound regulations. Moreover, it contributes immensely to protect the interest of the investors as well as the fund houses. It is due to their practices and high ethical standards, mutual fund operations carry on so smoothly.
As a matter of fact, 45 AMCs that are registered with SEBI, are its members. With attention to make the investments more accessible, fund houses, trustees, advisors, intermediaries should register.
Above all, AMFI also puts out an advertisement. It informs the investors about mutual funds as well as the risk associated with them.
AMFI has set out a certain Code of Ethics. Its mandatorily to follow this Code of Ethics. AMCs must follow these ethics in the operations. The operation of dealing with investors, intermediaries, and the general public.
The following are a few of the objectives of the Association of Mutual Fund in India:
- To define as well as maintain high professional and ethical standards.
- These standards are to be defined and maintained in all areas of operation.
- To recommend and promote best business practices as well as code of conduct. These are to be followed by members and others. They are engaged in the activities of mutual fund and asset management. Also, bodies like agencies connected or involved in the field of capital markets and financial services.
- To interact and represent SEBI on all matters. On matters that concern the industry of mutual fund
- To represent to the Government, RBI as well as other regulatory bodies. On all matters that relate to the industry of mutual fund
- Undertake a nationwide investor awareness program. This program intends to promote an understanding of mutual funds.
- Disseminate information on the Mutual Fund Industry. To undertake studies and research either directly or along with other bodies.
- Regulate the conduct of distributors. This conduct includes disciplinary actions (cancellation of ARN) for any violations.
- Protect and secure investor’s coupled with unitholder’s interest
AMFI Registration Number (ARN)
The AMFI Registration Number (ARN) is a unique number. This number gets allotted to individual agents, brokers, including other intermediaries. They are engaged in selling mutual funds of India.
However, the ARN is allotted to only those who hold NISM certificate under the National Institute of Securities Market. It is a training institute that offers certifications related to the securities market. On completion of the training, the NISM certificate is provided.
ARN holders must apply for renewal before six months of the expiry period. The validity gets extended if the application form is in order
Why Should Investors Know About the ARN?
Brokers and intermediaries help introduce investors to the world of mutual funds. It is, for this reason, it’s important to learn about the credibility of them.
The AMFI Registration Number(ARN) is a unique number. It is allotted to individual agents, brokers as well as other intermediaries.
The registered fund houses or intermediaries understand the various mutual funds and their types. They have deep knowledge of the ever-changing markets. It is important to keep a track of the ARN. This is to ensure the credibility of the fund houses.
Obviously, keeping just a track of the ARN would not be of any usefulness alone. The history of the fund house, any important updates w.r.t the mutual fund industry as a whole serves the purpose.
What is the Code of Ethics?
The AMFI Code of Ethics sets out the standards of good practices. This code needs to be followed by the Asset Management Companies.
The following is the code of Ethics:
- Integrity: Observing high standards by the members. Ensuring fairness in all dealings with investors, issuers, etc.
- Due Diligence: Exercising due diligence and ensuring high standards of service
- Disclosures: Making adequate and required disclosures to all the unitholders. It should be accurate and describing the investment objectives in a simple language
- Professional selling practice: Members should not use any unethical practice to sell or market the products and schemes
- Investment practice: Members should manage the scheme as per the investment objective laid down. Additionally, it should be in the interest of the unitholders
Code of Ethics
- Operations: Members should avoid conflict of interest in managing affairs. They shall not benefit at the expense of the unitholders
- Reporting Practices: A performance reporting on the basis of the return should be made as per the required due dates
- Unfair competition: Members should not make any comments which are disadvantageous. Or harmful to the other members or other market players
How to Register or Renew the AMFI Registration Number (ARN)?
The intermediaries play a crucial role in promoting the sale of mutual funds. The way of conducting business, adhering to the highest quality standards impacts the growth of mutual fund industry.
In order to register such intermediaries, AMFI introduced the registration process. This process is for those who have passed the certification test. The test which enables them to obtain an ARN.
The AMFI Registration Number ARN is a unique number. It identifies these intermediaries as AMFI Registered Mutual Fund Advisors (ARMFA).
The following is the process for obtaining the registration:
- In order to obtain the registration. Firstly, link your mobile number with Aadhaar number.
- Secondly, Pay the registration fee at AMFI website
- Remember, You need not submit The NISM passing certificate. Also, it will be automaticaly fetched from the NISM database.
- Lastly, you can get the registration number or ARN immediately. While corporates will get the registration number or ARN post document verification.
The following is the process for renewal of the registration:
- Firstly, Go to the official AMFI website
- Secondly, Click on distributor corner. Now enter your user-id (your ARN) and the password
- Thirdly, The NISM database automatically fetches the data on login
- Fourthly, Pay the renewal fee online
- Lastly, On completion of payment, the request is validated. Also, on successful validation renewal of ARN is instant
Rights of AMFI
The following are a few rights of the AMFI:
- It grants the users a non-exclusive, personal as well as non-transferable right. This right is to access, use as well as display their website. Further, a user agrees to use the website for lawful purposes. AMFI can take a legal action, in case of illegal usage.
- Since the data published by the AMFI, any modification or unauthorized usage invites legal action.
- AMFI will not be responsible in case of any decision taken by the investor on the basis of their website.
- AMFI India can sue anyone in case of illegally copying the website or offering services under its name
Committees of AMFI
In order to fulfil its objectives, AMFI has several committees to delegate responsibilities. The following are the committees under AMFI:
- Financial Literacy Committee
- Committee on Certified Distributors (ARN Committee)
- ETF Committee
- Committee on Operations, Compliance & Risk
- Valuation Committee
- Equity CIO Committee
Members of Association of Mutual Funds in India
|Aditya Birla Sun Life AMC Limited||IIFCL Asset Management Co. Ltd.||PPFAS Asset Management Pvt. Ltd.|
|Axis AMC Ltd.||IIFL Asset Management Ltd.||Principal Asset Management Pvt. Ltd.|
|Baroda Asset Management India Limited||IL&FS Infra Asset Management Limited||Quant Money Managers Limited|
|BNP Paribas AMC Private Limited||Indiabulls AMC Ltd.||Quantum AMC Private Limited|
|BOI Investment Managers Private Limited||Invesco Asset Management (India) Private Limited||Sahara AMC Private Limited|
|Canara Robeco AMC Limited||ITI Asset Management Limited||SBI Funds Management Private Ltd.|
|DSP Investment Managers Private Limited||JM Financial Asset Management Limited||Shriram Asset Management Co. Ltd.|
|Edelweiss Asset Management Limited||Kotak Mahindra AMC Limited||SREI Mutual Fund Asset Management Pvt. Ltd.|
|HDFC AMC Limited||Mahindra Manulife Investment Management Pvt Ltd||Taurus AMC Limited|
|ICICI Prudential AMC Limited||Motilal Oswal AMC Limited||Union AMC Private Limited|
Frequently Asked Questions
AMFI updates the mutual fund’s NAV every day on their website. You can also refer to the historical NAV of a fund.
No one can sell mutual funds without an ARN number. Under the following situations, ARN number can be withdrawn:
Violation of code of conduct.
If the ARN holder committed a serious offence.
A negligence complaint is filed at a consumer court.
Any intermediaries in mutual fund trade like agents, brokers can get an ARN.
ASSOCIATION OF MUTUAL FUNDS IN INDIA
Naman Corporate Link, Wing C, Unit No. 701,
Plot Nos. C-31 / C-32, G Block,
Bandra Kurla Complex,
Bandra – East, Mumbai – 400 051.
E-mail address : email@example.com