One of our readers wrote to us with this problem:
I am a senior citizen of 65 years of age and my ARN expired on November 19, 2019. I would like to understand if AMFI has suspended my ARN. If not, can I renew my ARN? Please guide me.
Brij Mohan Mittal, ARN 8431
Dear distributor,
AMFI new norms say that AMCs can give your clients to other distributors or simply shift their assets in direct plans if a distributor does not renew his ARN within 3 months of expiry of his ARN. Further, if a distributor does not renew his ARN within 6 months of expiry, AMFI will permanently cancel his ARN. AMFI will not issue fresh ARN to such distributors again.
However, these guidelines have come into effect from August 1, 2020.
While you should renew your ARN within six months of expiry of your ARN, you can renew your ARN even now.
Remember that AMCs will forfeit or write off your trail commission because you have not renewed your ARN within six months from the date of expiry. 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.
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.
