The Definition of ARN Code:
The ARN, short for Acquirer Reference Number, is unique code number that was launched in order to identify the go-betweens involved in the selling of the mutual funds.All the intermediary, broker or the agent has to make sure to clear the Certification Test of NISM. They also have to come to the agreement to abide by the code of conduct. Moreover, they also have to agree to the undertaking which is mentioned in the form of application. In order to get the Acquirer Reference Number, the senior citizens are allowed to attend the CPE, also known as the Continuing Professional Education. The corporate companies are also supposed to apply for obtaining the ARN. They will also have to agree to follow the code of conduct.
Each of the intermediaries will receive an identity cared containing a photo which consists of the ARN code, validity period of the Acquirer Reference Number as well as the address of the intermediary. The corporates will also obtain a letter of registration with the Acquirer Reference Number code, validity of the Acquirer Reference Number code, name of the ARN code. The corporate employees will also be issued a EUIN card which will contain such similar the details along with the EUIN.
Reasons of obtaining an ARN code:
Almost all of the investors are familiar with the notion that mutual fund investments are susceptible to the risk of market. Even though this kind of notion is true for several cases, it is not impossible to reduce the risk by being more observant. It is not only applicable to the investors but also those intermediaries who are in charge of the distribution of the mutual funds and they should strictly follow the rules and regulations. This method will ensure the safety of the interests of all the groups who are involved with the transaction.
Various measures in order to make sure the safety of the investors is ensured has been taken by the AMFI and SEBI. One of the examples of the measures is the compulsory procurement of the ARN code for the suppliers. AMFI, short for the Association of Mutual Funds of India, has made it mandatory for all the intermediaries that are involved in the marketing and the selling of mutual funds is order to clear a NISM (National Institute of the Securities Markets) certification. They are also required to register with the AMFI in order to obtain the ARN, AMFI Registration Number.
How to obtain ARN code:
The AMFI has bestowed the M/s Computer Age Management Services Private Limited (CAMS) with the duties in order to process the registration and to issue the Acquirer Reference Number on its behalf.
- Intermediaries are asked to apply in an authorized form that is available online. They also have to apply at the offices of the AMFI and CAMS. An online application can also be procured from the CAMS online service.
- The form of application is required to be submitted along with knowing your dealer (KYD) acknowledgment. If the application made for the KYD is made, then the individual has to present the KYD application form right in person.
- The intermediary which is required to provide the NISM certificate copy, the Aadhaar card copy, the PAN card copy, the bank account proof, and at least, two passport size photographs.
- The fee to be given by the individuals and the senior citizens is Rs 3,540 including the GST. The documents and the fees which are required will vary for the corporates and the other entities. You can look at the details here.
Benefits of the ARN Code:
Acquirer Reference Number code is very important for both the intermediary and the investor. Acquirer Reference Number is also the identity of the intermediary which has been used to keep track of the assets mustered by the intermediary. It is, after that, used to calculate the expense of the intermediary. From legal terms, an intermediary will become entitled to distribute the mutual funds after they have already received the Acquirer Reference Number.
The investor, on the other hand, has assured that the intermediary is a registered advisor of finance and will stick to the ethical code that is set by the AMFI. Investors can uplift the ARN by altering the distributor. If a distributor gets changed, the investor does not get charged trail commissions which results in the long-term financial advantages to the investor.
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