An analysis of ARN registration numbers reveals that there is an overall decline in registrations as the non-renewals exceed new registrations, shows an analysis by Ravi Samalad
While there has been a steady spurt in the new distributors entering the industry, the number of distributors not renewing their licenses is also seeing a commensurate spike. As on February 2011, the number has declined 2.5 per cent to 79,271, a decrease of 2,016 registrations from the September 2010 number of 81,287.
As is also known widely, not all ARN holders are active. Out of the 81,287 gross ARNs issued till September 2010, some 34,543 distributors or 42 per cent of them were active. Active distributors are those who transact in at least one or more mutual fund in that month. Distributors who had not transacted in a single mutual fund were almost equal at 34,800 during the same period. The balance had not renewed their licenses.
