Two readers wrote to us with the following query.
How can I transfer my assets with national distributor to my own ARN? Please guide me on how to get NOC from ND.
Snehal Mistry and Hitesh Patel, Nivesh Finserv, Baroda, Gujarat
Dear Snehal and Hitesh,
Transferring assets from a national distributor to your ARN is no longer possible in normal course. This is because AMFI has done away with partial transfer of assets. Transfer of AUM is allowed only if you transfer your entire assets to the new distributor.
Remember, the same holds true for transfer of assets from your ARN to a national distributor unless you decide to exit the distribution business. Distributors are no longer allowed to transfer their assets partially to a national distributor to gain access to their online execution services.
Earlier, it was possible to transfer the assets from your national distributor to your ARN. Distributors were required to obtain an NOC from national distributors and clients and inform respective AMCs about this transfer.
Compliance officials of two national distributors have confirmed that such a transfer is no longer allowed after AMFI issued the new norms on transfer of assets. However, we strongly advise you to contact your national distributor to know more about such a possibility.
Another way is reaching out to AMFI committee on ARN with your AUM transfer request along with a valid reason. AMFI would consider your request and decide if it should give you a clearance to transfer AUM from national distributor to individual ARN. Remember, it is on a case-to-case basis.
