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MF News Maharashtra, Gujarat and UP bring in highest number of new distributors

Maharashtra, Gujarat and UP bring in highest number of new distributors

Over 42% of the total new ARN registration were from these three states.
Nishant Patnaik Feb 18, 2019

Maharashtra holds the top position in terms of new ARN and EUIN registration. The state accounts for 26% of the new ARN registration, shows recent AMFI data on geographical spread of the new ARN holders for the period April-December 2018.

Since Maharashtra is the commercial capital of India, the state has added highest number of new ARNs and particularly EUINs through corporate employees, said experts.

Gujarat and Uttar Pradesh followed Maharashtra for second and third positions respectively. Both Gujarat and Uttar Pradesh have contributed 10% and 7% new distributors.

Put together the top three states account for over 42% of the new ARN and EUIN registration.

So far, the industry has added close to 43757 new distributors, of which 14311 are individuals and 28452 are corporate employees in April-December 2018. A rough calculation shows that Maharasthra has added 11400 new ARN and EUINs. Similarly, Gujarat and Uttar Pradesh have added 4375 and 3062 new ARNs and EUINs respectively.

AMFI data further shows that 38% of overall registration were from B30 towns.

However, the industry has witnessed a slowdown in new ARN registration post upfront commission ban. While the industry has added 3346 new distributors under individual category in the third quarter of FY 2018-19 i.e. October-December 2018, 5555 (July-September 2018) and 5410 (April-June) individuals joined mutual fund distribution business in the first two quarters of FY 2018-19. A rough calculation indicates that the industry has witnessed a decline of 40% in terms of number of new distributors.

AMFI data shows that nearly 15320 individual distributors chose not to renew their ARN in the first nine months of FY 2018-19. This is much higher than what individuals did last fiscal. AMFI data shows that 12600 distributors did not renew their ARN in the entire FY 2017-18.

 

 

State / Union territory

% of ARN/ EUIN
registered for the month of Dec 2018

Maharashtra

25.96

Gujarat

10.05

Uttar Pradesh

6.7

Tamil Nadu

5.81

Karnataka

5.4

Delhi

5.08

West Bengal

4.67

Telangana

4.65

Madhya Pradesh

4.51

Rajasthan

4.42

Haryana

3.17

Kerala

2.92

Punjab

2.67

Chattisgarh

2.28

Andhra Pradesh

2.12

Bihar

2.07

Orissa

1.8

Jharkhand

1.09

Remaining States having less
than 1% Registrations each

4.63

Total

100

 

 

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1 Comment
Prashant · 1 month ago
One request to my distributor friends not to do any new business for sometime to make them realise how important we are. If we do it manufacturers will again go to SEBI( by the way they are the ones who are influencing the regulator on the new so called "investor friendly" regulations to make more and more profits and SEBI helps them the reason for the same is unknown. SEBI is supposed to safeguard investors and not manufacturers but they do just that no idea why? Also please tell the new peoplenot to join because what is happening is old people not renewing their ARN so the money will lie in regular scheme and manufactures will save a huge amount on the brokerage not to be paid. So the fixed expense will be charged to the scheme and the brokerage component will be saved by manufacturers. A huge profits coming AMCs way. Well done SEBI.
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