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

Which statement about the regulatory framework for mutual fund distributors is correct?

A distributor obtains an AMFI Registration Number by passing the NISM-Series-V-A Mutual Fund Distributors examination and registering with AMFI. AMC registration alone is insufficient, SEBI does not grant ARNs directly, and the ARN has to be renewed periodically, so it is not valid for life.

  1. AA distributor may start selling mutual fund units after only registering with the AMC concerned
  2. BAMFI registration number (ARN) is obtained by clearing the NISM-Series-V-A exam and registering with AMFICorrect
  3. COnly SEBI can grant an ARN directly to distributors without any examination
  4. DAn ARN is valid for life and never needs renewal or any further certification

Explanation

Distributors must pass the NISM-Series-V-A certification and then obtain an AMFI Registration Number from AMFI. AMC registration alone is not enough, SEBI does not issue ARNs directly, and ARNs need periodic renewal linked to certification validity.

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