It is necessary that EUIN be provided for transactions that are advisory in nature, i.e. mutual fund investments made by an investor based on the advice provided by a relationship manager, distributor or an IFA
Investors making fresh purchases, additional purchases, switch-ins and new registrations in systematic investment plans (SIPs) and systematic transfer plans (STPs) in mutual funds (MFs) have to disclose their distributors’ employee unique identification number (EUIN) and their AMFI Registration Number (ARN).
The requirement has come into effect from June 1, 2013.
The objective of EUIN is to help address the problem of mis-selling of MF schemes by identifying the person involved in the sale of the schemes.
What is EUIN?
EUIN is a seven-digit unique alpha numeric identity number allotted by AMFI (Association of Mutual Funds in India) to each employee, relationship manager and distributor interacting with the investor for the sale of MFs, in addition to the ARN of the distributor.
EUIN is also issued to individual or sole proprietorship ARN holders.
Objectives of EUIN
- To address the problem of mis-selling
- To identify the sales personnel involved in such selling
- To track the sales personnel even in case of change in employment from one distributor to another or as an IFA (independent financial advisor)
Is it mandatory for the investor to quote EUIN?
Yes, EUIN needs to be mentioned for the transactions routed through distributors. However, EUIN can be left intentionally blank, if the investor signs the declaration.
What is the nature of transactions to which EUIN is applicable?
EUIN is applicable for all kinds of purchase transactions such as fresh purchases, additional purchases, switch-ins and new registrations of SIP, STP or DTP (dividend transfer plan).
EUIN is not applicable for dividend reinvestments, bonus units, redemption and SWP registration. In case of SIP / STP triggered transactions, EUIN quoted at the time of SIP / STP registration will be carried forward for subsequent installments.
It is necessary that EUIN be provided for transactions that are advisory in nature, i.e. investments made by an investor based on the advice provided by a relationship manager, distributor or an IFA.