New mutual fund distributors to get free ARN registration for five months

Registration fee of Rs 3000 waived off for distributors empaneling with AMFI between February and June.

AMFI has decided to waive off the registration fee of Rs 3000 for first –time distributors between 1^st February and 30th June in a bid to attract more distributors to the mutual fund fold. This move of AMFI is in line withSEBI’s September circular to take certain steps to re-energize the distribution business.

“SEBI had mentioned in its September circular that it will allow a new cadre of distributors to enter the mutual fund industry for boosting the distribution space. So, AMFI has also waived off the registration fee for all new distributors who register themselves between February and June. We have created a window to increase the distribution network by 3 folds,” says V Ramesh, Deputy CEO, AMFI.

Currently, 49000 KYD compliant distributors are registered with AMFI. This move by AMFI will remove an entry barrier and help AMCs sign up new distributors in semi-urban locations to promote and sell mutual funds. The mutual fund association is also looking at other initiatives to promote mutual fund business in B-15 cities.