EUIN Registration: Rules, Types, Purpose & FAQs

In its circular dated September 13, 2012, SEBI (Securities and Exchange Board of India) directed AMFI (Association of Mutual Funds India) to create an Employee Unique Identity Number (EUIN). Each Employee, Relationship Manager or Salesperson of the Mutual Fund Distributor, advising or selling the investor about Mutual Funds, has to receive this Number. In addition to the (ARN) AMFI Registration Number of the Distributor. SEBI had also mandated that Asset Management Companies have to get added the EUIN Registration of such sales personnel in addition to the AMFI Registration Number (ARN) of the distributor in the application form.

With EUIN Registration, you get a 7-digit Unique alphanumeric number, with one alphabet and six numerals. For example E012345.

The EUIN must necessarily be provided for advisory transactions. In other words, all those transactions, for which advice is sought by the investor from Mutual Fund Distributors, should be accompanied by the EUIN.

Rules Concerning EUIN Registration

• AMFI unit of CAMS shall generate EUIN for employees of distributors who are registered with AMFI and having a valid ARN. EUIN shall also be allotted to Individual/Sole Proprietorship ARN holders in their individual capacity as a Sales Person.
• CAMSonline sends a daily incremental list to all RTAs advising about all the new EUIN Registration. As well as any deletions or alterations made for those Mutual Fund Agents who join an ARN holder later on.
• Corporate ARN holders cannot undertake Mutual Fund business or transactions without registering their employees with AMFI under their ARN. Or without renewing the registration of existing employees. Their ARN is liable for suspension if they do not get those employees registered who are engaged in selling and marketing of Mutual Funds with AMFI.
• Quoting of this EUIN is compulsory for the transactions like Purchases, Switches, Registration of SIP/STP/Trigger STP/Dividend Sweep Plans. But EUIN is not applicable at the time of installments under SIP/STP/SWP/STP Triggers, Dividend re-investments, Bonus units, Redemption, SWP Registration, Zero Balance Folio Creation and installments under dividend sweep plans.
• EUIN is applicable for all those transactions which are made based on advice provided by the sales employee of the distributor.

Types of Transactions covered under EUIN

Transactions for which EUIN is applicable:

• Purchasing New Plans, Switching existing ones, and for Fresh Registrations of SIP/STP/Dividend Sweep Plan.

Transactions for which EUIN is not applicable:

• Ongoing SIP/STP/SWP/STP Triggers (registered before June 1, 2013),
• Reinvestments of Dividend, Bonus Units, Redemption, SWP Registration, Zero Balance Folio creation, and
• installments under Dividend Sweep Plans.

This EUIN applicability (or non-applicability) is for transactions executed through all modes. Whether it is Offline, Online, Mobile, SMS based transactions or even the transactions received through the Stock Exchange Platform.

Declaration

For a transaction that is Execution-only, the investor would need to sign a declaration which is included in the new application form:

“I (or We) hereby confirm that the EUIN box has been left blank, intentionally by me (or us) as this is an “Execution-Only Transaction without any interaction or advice by the employee or relationship manager or the salesperson of the above distributor. Notwithstanding the advice of in-appropriateness, if any, provided by the employee, relationship manager, or the salesperson of the distributor and the distributor has not charged any advisory fees on this transaction”.

Purpose of EUIN Registration

• Unlike the ARN which is common to the whole business entity, the EUIN is unique to one particular employee. Assigning this specific number, which is separate from the company’s ARN, helps to affix responsibility if any misselling occurs.
• The basic objective behind the introduction of EUIN Registration is to inculcate a sales responsibility to the EUIN holder and thereby make him/her responsible for the actions taken.
• Investors must use those application forms for their Mutual Fund Investment that has the space block for ARN code, Sub Broker ARN code, EUIN, and Sub broker code (as allotted by ARN holder).
• Moreover, this number will remain active even if that employee switches jobs from one employer to another, thereby helping an audit trail.

Process of Getting New EUIN Registration

For EUIN Registration, first of all, the employee applying must have already become Mutual Fund Agent. That is they, already, have cleared the mandatory NISM-VA Series examination or the CPE registration valid for senior citizens. After which they get allotted the ARN (AMFI Registration Number).

myCAMS ( M/s Computer Age Management Services Pvt. Ltd.)has been authorized by the AMFI to act as a processing agent for ARN.

For more information on ARN Registration, check ARN code: Definition & registration process.

With the NISM Passing Certificate and the ARN, now you can apply for EUIN, by filling the application form here. Download EUIN Registration Form.

The documents required to be attached are:

1. 2 Stamp sized photographs
2. Copy of PAN card
3. Address Proof (Copy of Ration Card, Bank Statement, Utility Bill – Electricity or Landline are valid)
4. Certified Copy of NISM/CPE Passing Certificate
5. Fees as applicable (only payable through Demand Draft)

Renewal of EUIN Registration

EUIN holders need to apply for renewal of EUIN on or six months before the expiry of the validity period of EUIN. If the renewal application is submitted within this time and the same is found in order, the EUIN will continue to be valid, after renewal.

If the application for renewal is submitted after the expiry of EUIN, the validity of renewed EUIN would start from the date of submission of the renewal application. It would be valid till the date mentioned on the NISM passing certificate/CPE Certificate.

The procedure for renewal is as under :

• ARN holders are required to make an application in the prescribed form, from the CAMs site. Download the ARN renewal form for Individual/Employee.
• You can also renew online, from the comfort of your office/home by visiting the Online Registration/Renewal page
• Pay the fee as applicable.

Investors to Keep Caution

Usually, AMFI can track the transactions done under an employee using his/her EUIN. But each employer needs to inform AMFI about the exit and entry of every employee. Does this move actually solve all the problems relating to mutual fund misselling by organizations or banks?

Not really, because we, still, may find many loopholes in this system.

1. Banks or organizations need one more signature of investor just below ARN number of the application form to avoid entering from EUIN. The Declaration has been mentioned within this blog, above.
2. And by signing here, you, the investor, are willfully investing but not under anyone’s advice. Thereby, any wrong in the investment will be your responsibility, not your bank’s or the AMC’s. Hence while investing through Distributors or banks always insist on EUIN. This seems to be the major disadvantage of this process.
3. The complaining process is quite long and tedious. You need to, first, file a complaint to AMFI ARN Committee, which will investigate the matter.
4. Till now, there is no clear information about what if the employer misses the information process of employee movement to AMFI.
5. The penalty prescribed is a suspension of EUIN. Implying that the employee would no longer be able to sell mutual fund products, further. Will it solve the loss already incurred?
6. What if a person who is selling Mutual Funds in banks has been moved to some other department? He will, still, be an employee of the bank, still enjoys the job, still works as usual but without EUIN doing another type of business. There is still a risk of him selling some other product?

FAQs for EUIN Registration

Q. What if EUIN was not filled?

If the particulars of EUIN along with relevant ARN code, have been obtained but not provided, the ARN holder shall rectify the same 7 days from the end of the month in which the transaction is submitted.

To give you an example, all those transactions which are submitted during August 2019 without EUIN, have to be rectified on or before September 7, 2019.

In case EUIN or the above declaration is not provided by this time, brokerage on this transaction will get forfeited permanently.

Q. For how long is the EUIN Registration valid?

EUIN has a validity period of 3-years. This period starts from the date of the NISM/CPE certificate issued by NISM.

Q. Does this condition apply to all the Distributors?

Earlier, it was applicable only for corporate employees. But it has been extended to IFAs as well, irrespective of whether they employ others or not.

All salespersons of non-individual ARN holders (whether acting as a main distributor or sub-broker) should obtain the EUIN.

Individual/Sole Proprietorship ARN holders must intimate AMFI (through CAMS) if they employ any Mutual Fund Agent under them. So that they could be allotted EUIN.

Q. Does this condition apply to Overseas Distributors?

EUIN is not applicable for overseas distributors who comply with the requirements as per AMFI circular CIR/ ARN-14/12-13 dated July 13, 2012.

These distributors are required to comply with the laws, rules, and regulations of jurisdictions where they carry out their operations in the capacity of distributors.

Q. How does the Corporate ARN holder get EUIN Registration for his employees engaged in the sales of Mutual Fund products?

AMFI has advised CAMS to generate EUIN for employees of the distributors who are currently registered with AMFI and having a valid registration. The corporate ARN holders will be intimated the details of such employees along with their EUIN, with a request to return ARN card issued to such employees and the new EUIN card will be issued to them.

Q. To whom will the EUIN be allotted?

EUIN is a unique number allotted to the sales personnel of all ARN holders. It is also allotted to Individual/Sole Proprietorship ARN holders in their capacity as Sales Person.

• Individual/Sole Proprietorship ARN holders have to obtain EUIN from AMFI. They have to intimate AMFI (through CAMS) whenever they employ any Mutual Fund Advisor as Sales Person so that EUIN could be allotted to them.
• Individual ARN – (Senior Citizen Category) ARN holders registered under the Senior Citizen category who have employees/relationship managers/ salespersons working under them for selling and marketing Mutual Fund products under their ARN are required to register these employees under their ARN and obtain the EUIN for them.

Q. Is it compulsory for EUIN to be entered in the application or transaction form along with the Distributor Code?

Yes. Providing EUIN of the concerned salesperson in the application form or transaction slips (along with entering the ARN code, as applicable) is mandatory for all transactions, including transactions routed through stock exchanges.

ARN holders have to ensure that the sub-broker affixes his/her ARN code and that the EUIN of the Sales Person in the columns separately provided in the forms. This is in addition to affixing the internal code issued by the main ARN holder.

Individual ARN holders who are selling themselves (whether as the main distributor or the sub-broker) shall affix the EUIN allotted to them.

Channel distributors and on-line distributors are to provide the EUIN in the electronic transaction feeds.

Q. Is EUIN validity linked to the main ARN holder’s expiry?

No. Because the Salesperson may move from one ARN to another.

Q. How is the movement of a salesperson tracked?

AMFI-unit of CAMS will track the duration for which a SalesPerson/EUIN is tagged to a particular ARN holder. That is, both the start date and end date of the association will be recorded and maintained for future reference.

Q. Who is responsible for intimating the movement of an employee?

The ARN holders are to notify AMFI-unit of CAMS about a Sales Person involved in the distribution of MFs, joining or leaving the organization quoting his/her EUIN immediately upon such movement.

Q. How will the complaints received be handled?

For any complaints received against a SalesPerson from investors, distributors, AMCs, Regulators, etc. AMFI ARN Committee investigates and advises AMFI-unit of CAMS about the continuation or suspension of the EUIN.

Q. What is an invalid EUIN Registration?

The following will be considered as an Invalid EUIN:

• EUIN is not available in the EUIN master maintained by CAMS.
• EUIN beyond its validity period
• EUIN not mentioned and the Investor declaration not provided in the application form.
• Incorrect EUIN detail in the application form.
• Change of EUIN (EUIN moving from one ARN to another ARN but not updated in the database provided by AMFI-unit of CAMS).

Q. If the business is obtained by the ARN holders without registering for EUIN or without entering the EUIN, what is the impact?

No brokerage/commission will be paid to ARN holders for the business acquired by them without registering or entering the EUIN obtained from AMFI.

Q. What should be done if a transaction is routed through an ARN but EUIN is not mentioned in the transaction slip?

EUIN is mandatory for non-advisory transactions (execution-only). Even though the advice relating to the scheme or asset class is only incidental. However, in case of some exceptional situation where there has been no interaction by the employee related to the transaction, AMCs shall take a declaration, as mentioned above, separately signed by the investor.

In case the above declaration is not provided within 30 days, brokerage on the transaction shall be forfeited permanently.

Q. Will transaction charges apply to the Invalid EUIN Registration transactions?

Transaction charges are termed as Incidental Expenses which will be deducted from the investor’s account and paid to the distributor for invalid EUIN transactions, also.

Q. What if the Investor wants to change the EUIN?

The EUIN can be changed if received within the specified period for remediation (30 days from the date of transaction). The Investor must ensure the EUIN is valid and tagged to the ARN holder that has not expired.

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