NISM-Series-V-A: Mutual Fund Distributors · Fund Distribution and Channel Management Practices

Mutual Fund Distributor Registration, ARN and Code of Conduct

Updated 11 October 2026 · Fact-checked

A mutual fund distributor must pass the NISM Series V-A exam, register with AMFI and receive an ARN (AMFI Registration Number) before selling units. The EUIN identifies the employee, relationship manager or sales person who sourced the transaction. The code of conduct requires honest, fair, suitable and transparent dealing with investors.

Understand Distributor Registration, ARN and Code of Conduct

Only qualified and registered people may sell mutual fund units. The qualification is a NISM certificate, which for distributors means the NISM-Series-V-A exam. The registration is done with AMFI (Association of Mutual Funds in India), which issues a unique number called the ARN. AMFI registration requires a valid NISM certificate.

The ARN identifies the distributor firm or individual. It must be quoted on every application the distributor routes, so the AMC and registrar know who sourced the business and to whom to pay commission. It is a registration, not a licence from SEBI, though it works within SEBI's framework.

The EUIN (Employee Unique Identification Number) identifies the individual employee, relationship manager or sales person of the distributor who interacts with the investor. It is mandatory for that person, whether or not advice is given. Its purpose is to reduce mis-selling. If an employee sells but a different person's details were captured, accountability is lost. So the EUIN traces the sale to the person who dealt with the investor.

Only where the transaction is execution-only, with no interaction or advice from the employee, may the EUIN be left blank. The investor then signs a declaration on the form for this.

The simplest way to separate the two: ARN is who the distributor is; EUIN is which person did the selling. One ARN can have many EUINs under it. An individual distributor who deals personally with the investor also has an EUIN.

The ARN is valid for 3 years and is renewed with a valid NISM certificate. AMFI's renewal requirements also include continuing professional education. The code of conduct sets behaviour standards such as honesty, due diligence, suitability, disclosure of commissions and no misleading claims. Breach can lead to suspension or cancellation of the ARN.

Key formulas to remember

ARN: ARN = AMFI Registration Number, issued to the distributor entity or individual; Quoted on every transaction the distributor sources. Identifies who earns the commission.
EUIN: EUIN = Employee Unique Identification Number, for the employee, relationship manager or sales person who sourced the transaction; Prevents mis-selling by tracing the sale to a person. One ARN can have many EUINs.
Execution-only transactions: No advice given (execution-only) → investor signs a declaration on the form for the EUIN being left blank; The declaration states the transaction is without interaction or advice from the employee. It is not a general substitute for the EUIN.
Entry qualification: NISM-Series-V-A certificate + AMFI registration → ARN; Both are needed. Certificate alone does not allow you to sell. NISM certificate validity is 3 years from the date of the exam.
Code of conduct core duties: Honesty + due diligence + suitability + disclosure + no misleading claims + compliance; Learn these as the themes behind most code of conduct options.

How to solve Distributor Registration, ARN and Code of Conduct questions

Questions on this topic test definitions, who needs what, and which behaviour breaches the code. Use a fixed routine so you do not fall for look-alike options.

1Read the question and identify the theme: ARN, EUIN, certification, renewal or code of conduct.
2If it is ARN or EUIN, ask: is the point about the firm or the person? Firm or registered individual is ARN. The selling employee is EUIN.
3If it is about qualification, remember both the NISM-Series-V-A pass and AMFI registration are needed before selling.
4For code of conduct, check each option against the core duties: honest, fair, suitable, disclosed, compliant.
5Eliminate options that promise returns, hide commission, push unsuitable products or favour the distributor over the investor.
6For 'except' or 'not' questions, mark which option is the breach or the exception before choosing.
7Pick the option that matches the rule word for word, and avoid options with absolute words unless the rule itself is absolute.

Quickest way: Firm vs person, then duty test

When to use it: Use this when you have under a minute per question and the options look similar.

ARN means the registered distributor. EUIN means the individual sales person who sourced the transaction.
If the transaction is execution-only with no advice, the investor signs a declaration on the form for the EUIN being left blank. Otherwise the EUIN of the person who sourced it is quoted.
For conduct questions, ask: does this protect the investor? If yes, it is likely correct.
Reject any option that hides charges, guarantees returns or ignores suitability.

Common mistakes in Distributor Registration, ARN and Code of Conduct

Treating ARN and EUIN as the same number
Both are IDs printed on the same application form.
Fix: ARN belongs to the distributor. EUIN belongs to the employee who sold. Link ARN to commission and EUIN to accountability.
Thinking the NISM certificate alone lets you sell mutual funds
Students see the exam as the final step.
Fix: Remember the sequence: pass the exam, then register with AMFI, then receive the ARN.
Thinking the declaration replaces the EUIN whenever no advice is given
Students remember the execution-only declaration but forget that the EUIN identifies the person who interacts with the investor.
Fix: The EUIN is mandatory for the employee who interacts with the investor, whether or not advice is given. Only where the transaction is execution-only, with no interaction or advice from the employee, may the EUIN be left blank, and the investor signs a declaration for this.
Ignoring renewal and validity
Focus is on getting registered, not keeping it.
Fix: Remember that the ARN is valid for 3 years and is renewed with a valid NISM certificate. The NISM certificate is also valid for 3 years from the exam date. An expired certificate or ARN blocks you from selling.
Choosing options that promise assured returns as 'good service'
They sound customer friendly.
Fix: The code bars misleading claims. Mutual fund returns are market-linked and cannot be guaranteed.
Assuming commission need not be disclosed if the investor does not ask
Students think disclosure is only on request.
Fix: The code expects transparency about commissions and charges. Treat concealment as a breach.

Worked examples

Example 1

A relationship manager of a distributor firm sells a scheme to an investor after discussing options. Which identifier should capture the manager's details on the application: ARN of the firm, or the manager's EUIN? Which one traces the sale to the manager?

Show the solution

The firm's ARN identifies the distributor entity that earns the commission.
The question asks what traces the sale to the individual who interacted with the investor.
That is the role of the EUIN, which is issued for each employee or individual who sells.
So the application carries the firm's ARN and the manager's EUIN, and the EUIN traces the sale to the manager.

Answer: The manager's EUIN traces the sale to the individual. The firm's ARN identifies the distributor.

Example 2

Which of these actions by a distributor is a breach of the code of conduct? (A) Disclosing all commissions earned to the investor, as required (B) Recommending a scheme matched to the investor's risk profile (C) Telling an investor a scheme will definitely give 15% a year (D) Quoting the ARN on every application

Show the solution

Option A shows transparency, which the code expects.
Option B shows suitability, which is a core duty.
Option C is a guarantee of returns. Mutual fund returns are market-linked and cannot be promised, so this is a misleading claim.
Option D is required practice.

Answer: Option C is the breach.

Exam tips

Expect direct definition questions: what ARN and EUIN stand for and who holds each.
Watch for 'which is NOT' wording in code of conduct questions and mark the breach carefully.
Remember the sequence: NISM-Series-V-A pass, AMFI registration, ARN, then renewal.
V-A has no negative marking, so never leave a question blank. Eliminate and guess.
Do not invent numbers for fees or renewal periods. If an option gives a specific figure you do not recall, prefer the option that fits the rule's logic.

Practice questions from Fund Distribution and Channel Management Practices

Distributor Registration, ARN and Code of Conduct: frequently asked questions

What is the difference between ARN and EUIN?

ARN is the AMFI Registration Number given to the distributor firm or individual. EUIN is the Employee Unique Identification Number of the employee, relationship manager or sales person who interacts with the investor. ARN ties to commission, and EUIN ties to accountability.

How do I get an ARN as a mutual fund distributor?

First pass the NISM-Series-V-A Mutual Fund Distributors exam. Then apply to AMFI for registration with your documents and valid certificate. After approval you receive your ARN, which is valid for 3 years and is renewed with a valid NISM certificate.

Is the EUIN always required?

The EUIN is mandatory for the employee, relationship manager or sales person who interacts with the investor, whether or not advice is given. Only where the transaction is execution-only, with no interaction or advice from the employee, may the EUIN be left blank. The investor signs a declaration for this.

How long is the NISM-Series-V-A certificate valid?

The NISM certificate is valid for 3 years from the date of the examination. Plan renewal in advance so your ability to sell is not interrupted.