In accordance with the SEBI's September 2012 directive and periodic AMFI (Association of Mutual Funds in India) guidelines, it is now mandatory to specify the details of the Employee Unique Identification Number (EUIN) (of the sales person involved in the sale or marketing of mutual fund products.

This is in addition to the existing requirement to specify the AMFI Registration Number (ARN) of the distributor and the sub-broker, if any, in scheme application forms. Here are responses to queries in this regard.

What is EUIN?

The Employee Unique Identification Number is a unique alpha numeric identity number allotted by the AMFI to each and every employee, relationship manager, or sales person of a distributor who interacts with investors for selling mutual fund products.

EUIN is in addition to the ARN allotted to each distributor.

It is also issued to individual and sole proprietorship ARN holders in their individual capacity as sales persons, selling mutual fund products. Thus, while an ARN identifies a distributor, EUIN identifies the sales person who interacts with the investor.

The EUIN of such sales personnel is to be disclosed on mutual fund scheme application forms/transaction requests along with the ARN of the distributor.

The principle is that EUIN be provided for transactions an investor makes based on the advice of an employee or sales person of a distributor or IFA.

What is the objective behind introducing EUIN?

The objective is to identify the sales persons involved in selling mutual fund products, when investors invest through a distributor.

This will help in identifying sales people in the event of mis-selling. It would help in tracking mutual fund sales persons even in case of change in employment from one distributor to another.

Can I leave the EUIN box blank?

EUIN can be left intentionally blank, if an investor has not received any advice on the investment from the distributor.

In such a case, investors should sign an “execution only” declaration on the application form, confirming that the transaction has been carried out without any advice by the employee/relationship manager/sales person of the distributor or sub-broker.

What are the transactions for which EUIN is applicable?

EUIN is to be mentioned for all kinds of purchase transactions such as fresh purchases, additional purchases, switch-ins and new registrations of SIP/STP/Flex STP/DTP.

In case of SIP/STP triggered transactions, EUIN quoted at the time of SIP/STP Registration will be carried forward for subsequent instalments.

EUIN is not applicable for dividend reinvestments, bonus units, redemption and SWP registration.

Contributed by CAMS Viveka, the Investor Education initiative of CAMS.

comment COMMENT NOW