To safeguard the Mutual Fund Investors as well as Mutual Fund Distributors, SEBI vide circular dated September 13, 2012, has directed Mutual Funds to capture the unique identity number (EUIN) of the employee/ relationship manager/ sales person of the distributor interacting with the investor for the sale of mutual fund products, in addition to the AMFI Registration Number (ARN) of the distributor.
This Employee Unique Identification Number is referred as “EUIN”.
EUIN will be a unique number allotted to each Sales Person holding a valid NISM certificate and associated with an ARN holder.
So, now Indians have to remember one more number!!
What is the Purpose of EUIN?
The main purpose of EUIN is to assist in tackling the problem of mis-selling even if the employee/relationship manager/sales person leaves the employment of the distributor or his/her sub broker.
What is EUIN?
EUIN is a unique alpha numeric identity number allotted by AMFI to every employee, relationship manager or sales person of a distributor who interacts with investors for the sale of mutual fund products. EUIN is in addition to the ARN allotted to each distributor. It is also issued to individual and sole proprietorship ARN holders in their individual capacity as persons selling mutual fund products. Thus, while an ARN identifies a distributor, EUIN identifies the sales person who interacts with the investor.
Is EUIN compulsory?
Quoting of EUIN is mandatory in case of advisory transactions. If the transaction is an Advisory transaction, the ARN Holder should put his/her EUIN in the column provided in the application form. However, if the transaction is an “Execution Only” transaction, the space provided for mentioning EUIN may be kept blank.
It is upto investors to be careful in understanding whether the transactions falls under ‘advisory’, mode or ‘execution’, mode. If the EUIN and/or sub-broker code(ARN code of sales person/employee) is left blank, the transaction will be considered as an “execution-only” transaction.
Applicability of EUIN
A. Below table displays the applicability of EUIN for different types of transactions:
Transaction Type EUIN applicable
Purchases / Subscriptions: Yes
Registration of SIP / STP / DTP / Trigger: Yes
Zero Balance Folio creation: No
Registration of SWP: No
Installments under SIP / STP / SWP / DTP / Trigger
(registered prior to effective date, June 1, 2013) : No
Bonus Units: No
Further, EUIN will not be applicable for overseas distributors who comply with the requirements as per AMFI circular CIR/ ARN-14/12-13 dated July 13, 2012, where the distributor shall be required to comply with the extant laws, rules and regulations of jurisdictions where they carry out their operations in the capacity of distributors.
What is required from you, as an Investor?
- Please ensure that the application form, if routed through a Distributor shall have a valid ARN code, Sub broker ARN code, and EUIN.
- Investors are further requested to use only those application forms/ transaction forms which have space/provision to write the Sub broker ARN code and the EUIN.
- Investors transacting online or through any other mode offered by a distributor, are requested to mention the sub-broker ARN code and the EUIN while placing the transaction. If the transaction is an “Execution only” transaction, investors are requested to clearly indicate the same.
Can I leave the EUIN box blank?
The EUIN can be left intentionally blank if an investor has not received any advice on the investment/transaction from the distributor. In such a case, investors should sign an “execution only” declaration on the application form. The declaration would be as below:
I/We hereby confirm that the EUIN box has been intentionally left blank by me/us as this is an “execution-only” transaction without any interaction or advice by the employee/relationship manager/sales person of the above distributor or notwithstanding the advice of inappropriateness, if any, provided by the employee/relationship manager/sales person of the distributor and the distributor has not charged any advisory fees on this transaction.
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