Updating employee unique identification number (EUIN) has got easier for individual ARN holders. EUIN is a unique seven digit alpha numeric number assigned to distributors and their employees.
All distributors are required to quote EUIN in applications forms before submitting them to R&Ts. However, distributors or their clients can sometimes miss out on mentioning the EUIN. In such cases, distributors are supposed to furnish EUIN to R&Ts within 30 days, failing which their commissions are forfeited. The commissions are released by fund houses if distributors remediate it within this period.
Now, in case of individual ARN holders, instead of distributors having to furnish EUIN to R&Ts, AMCs are updating EUINs on their own. This has brought relief to individual ARN holders across the country.
Distributors say that around 12 AMCs have already started auto-populating EUINs and others are likely to follow suit.
“Our clients don’t know our EUIN. If we are not able to furnish EUIN before 30 days, then our brokerage is forfeited. Now, in case of individual ARN holders, AMCs are updating the EUINs from their records,” said Valady V Barathwaaj, an IFA from Chennai, who has been pursuing this matter with AMCs.
“It is a logical step. Individuals have only one EUIN and we are updating it ourselves in cases where EUIN is not mentioned,” said the operations head of a bank sponsored fund house.
Quoting EUIN in application forms became mandatory from June 01, 2013 for purchases, switch, registration of SIP / STP / DTP / trigger.
“It was very difficult for us to monitor this and sometimes we missed out on our brokerage. We are thankful to AMCs who are auto-populating EUINs,” said Srikanth Matrubai, a Bengaluru based advisor.
EUIN was introduced by SEBI to tackle mis-selling.
