Overseas distributors will be required to register with AMFI from now on. However, they will not be required to obtain NISM certification. Overseas distributors are those who don’t sell mutual fund schemes to any investors in India.
Overseas distributors are required to comply with the extant laws, rules and regulations of jurisdictions where they carry out their operations.
“While AMFI registration is not necessary as per SEBI guidelines, the ARN committee has recommended that overseas distributors may be advised to complete a basic level registration with AMFI for various purposes, including tracking and MIS,” stated the circular.
These distributors will be required to pay a one-time fee of US $ 1000 (corporate) and US $ 100 (Individuals) for registering with AMFI. To register with AMFI, these distributors are required to submit identity proof and address proof. They are also required to submit proof of registration/ regulation in the jurisdiction(s) where they propose to carry out activity of distribution of Indian mutual fund schemes.
The due diligence of these distributors has to be done by AMCs. “It is clarified that since AMFI registration is not required by SEBI, AMFI would not be carrying out due diligence on these distributors on behalf of the mutual fund industry. AMCs will be fully responsible for any SEBI related requirements on these distributors,” stated the AMFI circular.
After obtaining ARN, they are required to approach the AMCs for empanelment. After empanelling with the AMC, they can sell units of mutual fund schemes of the AMC to investors outside India. The ARN allotted to Overseas Distributors does not have a time limit.
