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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework

Which statement about the Association of Mutual Funds in India (AMFI) registration of a mutual fund distributor is correct?

AMFI issues the ARN to distributors who hold a valid NISM-Series-V-A certificate, and the registration is valid for a limited period and must be renewed. It is not issued by SEBI or by individual AMCs, and individuals need it as well as firms.

  1. AAn AMFI Registration Number (ARN) is issued to a distributor who has passed the prescribed NISM certification and whose code is valid for a stated period subject to renewalCorrect
  2. BAn ARN is issued by SEBI directly and never needs renewal
  3. CAn ARN is needed only by corporate distributors, not individuals
  4. DAn ARN is issued by the AMC to each of its distributors separately

Explanation

AMFI issues the ARN to distributors who hold a valid NISM-Series-V-A certification, and it is valid for a fixed period and must be renewed. It is issued by AMFI, not SEBI or individual AMCs, and individuals as well as entities need it.

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