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

Under SEBI's mutual fund regulations, which statement about the AMFI Registration Number (ARN) for a distributor is correct?

The ARN is issued by AMFI to distributors who have cleared the NISM-Series-V-A examination and completed Know Your Distributor formalities. It is not tied to a turnover limit, is not issued by SEBI to AMCs, and requires renewal with the certification.

  1. AIt is issued by AMFI to distributors who have passed the NISM-Series-V-A examination and meet KYD requirementsCorrect
  2. BIt is issued by SEBI directly to each mutual fund house for its agents
  3. CIt is needed only when a distributor handles more than Rs 10 lakh a year
  4. DIt is valid for life and needs no renewal or further certification

Explanation

AMFI issues the ARN to distributors who have the required NISM certification and have completed KYD. It is not issued by SEBI to AMCs for agents, there is no turnover threshold, and the registration must be renewed periodically along with the certification.

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