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

Which of the following best describes the purpose of an AMFI Registration Number (ARN) for a mutual fund distributor?

An ARN is the unique AMFI registration code given to a certified mutual fund distributor. It identifies the distributor on investor transactions and enables the AMC to pay commission, so it is not a tax number, folio number or portfolio management licence.

  1. AIt is a unique registration code that allows the distributor to be identified and to receive commission on mutual fund salesCorrect
  2. BIt is a permanent account number issued by the Income Tax Department for the distributor
  3. CIt is a folio number allotted to an investor when the first investment is made
  4. DIt is a licence issued by SEBI for managing mutual fund portfolios

Explanation

AMFI issues the ARN to distributors who have passed the required NISM certification. The code identifies the distributor on transactions and is used for commission payment. A PAN is a tax identifier, a folio number belongs to the investor, and portfolio management licences are a different matter.

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