One of our readers wrote to us with this problem,
My ARN was expired two years back. I would like to understand if AMFI has suspended my ARN. If not, can I renew my ARN? Please guide me.
The distributor requested anonymity
Dear distributor,
While you should renew your ARN within six months of expiry of your ARN, you can continue to renew your ARN ever after two years. AMFI norms doesn’t stipulate any timeline to renew the ARN.
However, if you renew your ARN later than six months from the date of expiry, AMCs will forfeit or write off your trail commission. Once you renew your ARN, you will continue to get trail commission on your previous assets i.e. assets that you built before the expiry of your ARN.
On suspension, AMFI suspends ARN only if a distributor breaches the code of conduct. Typically, investors lodge complaints with AMCs if they are not happy with the services of distributors. If found guilty, AMFI can take action against the distributor.
Coming back to your question on renewal procedure, you will have to appear for NISM Distribution Certification Examination Series-VA again. You can appear at any NSE test center for the exam. The system will generate the test results immediately after the exam. The exam will cost you Rs.1500.
Once you pass this exam, you can renew your ARN either online or by physically submitting your documents at any CAMS point of service. Currently, the renewal fee for ARN is Rs.1770 including GST for individual distributors.
