Mutual Fund Distributor License

AMFI Registration Number (ARN) • NISM Certification • MFD Compliance

Overview

A Mutual Fund Distributor (MFD) License is mandatory for any individual, firm, or company wishing to distribute or sell mutual fund schemes to investors in India. The license is governed by the Association of Mutual Funds in India (AMFI) under the regulatory oversight of the Securities and Exchange Board of India (SEBI). To obtain an AMFI Registration Number (ARN), applicants must first clear the NISM Series-V-A: Mutual Fund Distributors Certification Examination.

The MFD license enables individuals and entities to earn trail commissions and upfront fees by distributing mutual fund products on behalf of Asset Management Companies (AMCs). It also covers sub-brokers, banks, NBFCs, and corporate distributors operating in the investment advisory and distribution space.

Non-compliance — such as distributing mutual funds without a valid ARN — attracts strict penalties from SEBI and AMFI, including cancellation of registration, fines, and legal action. Timely renewal and compliance with the Continuing Professional Education (CPE) requirement are equally important for maintaining an active ARN.

Benefits of a Mutual Fund Distributor License

Legal Authority to Distribute

An ARN grants you the legal right to market and sell mutual fund schemes across all AMCs registered in India.

Commission & Trail Income

Earn upfront commissions and recurring trail fees on the AUM (Assets Under Management) you generate for AMCs.

Wide Business Scope

Distribute SIPs, lump sum investments, and NFOs across equity, debt, hybrid, and sectoral fund categories.

Credibility & Trust

AMFI registration establishes your credibility with investors and AMCs, enabling long-term client relationships.

Scalable Business Model

Grow from individual distribution to building a team, onboarding sub-distributors, and expanding AUM significantly.

SEBI-Regulated & Compliant

Operating under SEBI and AMFI guidelines protects you and your clients, reducing disputes and legal risks.

Mutual Fund Distributor License Process

The complete process for obtaining an ARN / Mutual Fund Distributor License includes the following steps:

1. NISM Certification

Clear the NISM Series-V-A: Mutual Fund Distributors Certification Examination. Individuals must score at least 50% (60% for empanelment in some AMCs). The certificate is valid for 3 years.

2. EUIN (Employee Unique Identification Number)

Employees of distribution entities must obtain an EUIN in addition to the ARN held by the company for compliance with AMFI regulations.

3. ARN Application on AMFI Portal

Submit the ARN application online through the AMFI portal (amfiindia.com) along with KYC documents, NISM certificate, and applicable fees.

4. KYC Verification

Complete KYC verification through CAMS or Karvy (KFintech). Biometric or in-person verification may be required for individual applicants.

5. ARN Issuance

Upon successful verification, AMFI issues the ARN card and number. The ARN is valid for 3 years and must be renewed before expiry.

6. AMC Empanelment & Ongoing CPE

Register with individual AMCs for empanelment to start earning commissions. Complete CPE (Continuing Professional Education) hours before renewal.

Documents Required

Documents required for ARN registration vary based on applicant type (individual, firm, or company), but commonly include:

Individual / Proprietor
  • NISM Series-V-A Certificate
  • PAN Card
  • Aadhaar Card
  • Passport-size Photograph
  • Bank Account Details (cancelled cheque)
Partnership Firm / LLP
  • Partnership Deed / LLP Agreement
  • Firm PAN Card
  • NISM Certificate of all Partners
  • Address Proof of Firm
  • GST Registration (if applicable)
Company / Corporate Entity
  • Certificate of Incorporation
  • MOA & AOA
  • Company PAN Card
  • NISM Certificate of Key Persons
  • Board Resolution for ARN Application
Address Proof
  • Utility Bill (Electricity / Telephone)
  • Rental Agreement
  • Bank Statement (latest 3 months)
  • GST Certificate (as address proof)
Additional Requirements
  • EUIN Application Form (for employees)
  • Declaration of Non-Conviction
  • KYD (Know Your Distributor) Form
  • AMFI Application Fee Payment Receipt

AMFI Registration Fees

Fees for Mutual Fund Distributor (ARN) registration are set by AMFI. The ranges below reflect current applicable rates — professional service charges may apply separately.

Individual ARN

Fresh Registration

₹1,500 (inclusive of GST)
Non-Individual ARN

Firm / Company Registration

₹3,000 (inclusive of GST)
EUIN Registration

Per Employee (fresh)

₹500 per EUIN
ARN Renewal

Every 3 Years

Individual: ₹1,500 | Non-Individual: ₹3,000

* NISM Exam Fees (separate)

NISM Series-V-A Exam: ₹1,500 per attempt. CPE (Continuing Professional Education) costs vary by provider — typically ₹500 – ₹2,000.

Mutual Fund Distributor License

Frequently Asked Questions

An MFD License, issued in the form of an AMFI Registration Number (ARN), authorizes individuals and entities to legally distribute and sell mutual fund schemes to investors in India on behalf of SEBI-registered Asset Management Companies (AMCs).

Yes, passing the NISM Series-V-A: Mutual Fund Distributors Certification Examination is mandatory before applying for an ARN. For non-individual entities, all key personnel involved in distribution must hold a valid NISM certificate.

An ARN is valid for 3 years from the date of issue. To renew, you must complete the mandatory CPE (Continuing Professional Education) hours and submit a renewal application on the AMFI portal along with the applicable fee before expiry.

Distributing mutual funds without a valid ARN is a violation of SEBI regulations and AMFI guidelines. Penalties include cancellation of registration, monetary fines, debarment from the securities market, and possible prosecution under SEBI Act provisions.

Yes, companies, LLPs, partnership firms, banks, NBFCs, and other corporate entities can obtain a non-individual ARN. The key personnel of such entities must hold valid NISM certificates and comply with KYD (Know Your Distributor) norms.