EUIN FAQ

What is Employee Unique Identification Number (EUIN)?

As per SEBI circular CIR/IMD/DF/21/2012 dated September 13, 2012, AMFI is required to create a unique identity number of the employee/ relationship manager/ sales person of all ARN (AMFI Registration Number) holders interacting with the investor for the sale of mutual fund products, in addition to the AMFI Registration Number (ARN) of the distributor

The unique identity number of such an employee is referred to as Employee Unique Identification Number (EUIN). The EUIN is a seven digit unique alpha numeric number, with one alphabet and six numerals, for example E123456 allotted to each Sales Person holding a valid NISM certificate and associated with an ARN holder.

What is the benefit of providing EUIN?

  • EUIN will assist in tackling the problem of mis-selling even if the employee/relationship manager/sales person leave the employment of the ARN holder / Sub broker.
  • It aims to inculcate a sales responsibility to the employee/relationship manager/sales person and thereby make all salespersons responsible for their actions.

Who will maintain the EUIN database?

The EUIN database will be maintained by the AMFI-unit of CAMS.

To whom will the EUIN be allotted?

EUIN is a unique number allotted to the sales persons of all ARN holders. It is also allotted to Individual/Sole Proprietorship ARN holders in their individual capacity as Sales Person.

  • Individual/Sole Proprietorship : ARN holders have to obtain EUIN from AMFI. They have to intimate AMFI-unit of CAMS in case they employ any Sales Person so that EUIN could be allotted to them.
  • Individual ARN : (Senior Citizen Category):ARN holders registered under Senior Citizen category who have employees/ relationship managers/ sales persons working under them for selling and marketing Mutual Fund products under their ARN are required to register these employees under their ARN and obtain the Employee Unique Identification Number (EUIN) for them.
  • Overseas Distributors: As per AMFI circular CIR/ARN/-14/12-13 dated July 13, 2012, EUIN will not be applicable for overseas distributors who comply with the requirements.

How does the Corporate ARN holder get EUIN for the employees engaged by him in the sales of Mutual Fund products?

AMFI has advised CAMS to generate Employee Unique Identification Number (EUIN) for employees of distributors who are currently registered with AMFI and having a valid registration. The details of such employees along with their EUIN would be intimated to the corporate ARN holders, with a request to return ARN card issued to such employees and the new EUIN card will be issued to them.

Is it necessary to enter the EUIN in the application/transaction form along with the Distributor Code?

Yes. With effect from October 1, 2013 providing EUIN of the concerned sales person in the application form / transaction slips (in addition to entering the ARN code / Sub Broker ARN code/Sub-broker code, as applicable) is mandatory for all transactions, including transactions routed through stock exchanges.

ARN holders have to ensure that the sub broker affixes his/her ARN code and the EUIN of the Sales Person in the columns separately provided in the transaction slips / application forms. This is in addition to the practice of affixing the internal code issued by the main ARN holder

Individual ARN holders who are Sales Persons themselves (either as the main distributor or the sub broker) shall affix the EUIN allotted to them in the transaction slips / application forms.

Channel distributors and on-line distributors are required to provide the EUIN in the electronic transaction feeds.

What is the type of transactions to which EUIN would be applicable?

Purchases, Switches, Registrations of SIP / STP / DTP facility.

What is the type of transactions to which EUIN would not be applicable?

Ongoing SIP/ STP / SWP / STP, Dividend Reinvestments, Redemption, SWP Registration, Zero Balance Folio creation and installments under DTP facility

What is the effective date of EUIN?

For transactions as mentioned above EUIN is effective from June 1, 2013, executed through all modes except for the following modes which shall be implemented by October 1, 2013.

  • Mobile / SMS based transactions.
  • Transactions received through the Stock Exchange Platform.
  • ATM based
  • Call Center originated

Is EUIN validity linked to the main ARN holder’s expiry?

No, the EUIN validity is not linked to the main ARN holder’s expiry as the Sales Person may move from one ARN to another.

Who will track the tenure of a sales person with a particular ARN holder?

AMFI-unit of CAMS will track the period for which a Sales Person / EUIN is tagged to a particular ARN holder i.e. both start date and end date of an EUIN’s association with a ARN holder will be recorded and maintained for future reference.

Should the ARN holder intimate anyone regarding appointment or resignation of sales person to whom EUIN is allotted?

Yes. ARN holders shall notify the AMFI-unit of CAMS about a Sales Person engaged in the distribution of Mutual Funds, joining or exiting the organization quoting the employee’s EUIN immediately.

What action would be taken if any complaint is received from the investor, AMC, ARN holder or the regulator against the Sales Person?

On receipt of complaint against a Sales Person from an Investor, AMC, ARN holder or the Regulator, the AMFI ARN Committee shall carry out investigations and advice AMFI-unit of CAMS about the continuation or suspension of the EUIN.

What is an Invalid EUIN mean?

The following cases will be considered as an Invalid EUIN:

  • EUIN not available in the EUIN master provided by the AMFI unit of CAMS.
  • EUIN beyond the validity period
  • EUIN not mentioned and Investor declaration not provided in the application form
  • Incorrect EUIN detail in the application form
  • Change of EUIN (EUIN moving from one ARN to Another ARN not updated in the database provided by AMFI-unit of CAMS)

Will the EUIN be matched with main ARN or Sub-Broker ARN for validation?

EUIN will be matched with the EUIN Master provided by AMFI unit of CAMS. The scenarios are detailed in the table below:

  • If Main ARN, Sub Broker ARN and EUIN is provided, in this case EUIN will be matched with the Sub Broker ARN only.
  • If Main ARN and EUIN is provided, but Sub Broker ARN is not provided, in this case EUIN will be matched with the Main ARN only

What is the mode of communication for raising clarification with the distributors?

SMS, Email communication would be triggered when EUIN or Sub Broker ARN is invalid.

If Business is obtained by the ARN holders without registering for EUIN or without entering the EUIN obtained from AMFI, what is the impact on the Brokerage/commission for such transactions?

No brokerage/commission will be paid to ARN holders for the business acquired by them without registering or entering the EUIN obtained from AMFI.

In case where EUIN along with ARN code / Sub Broker ARN code, as applicable, have been obtained but not provided, the ARN holder is required to remediate the same within 30 days for all transactions submitted post October 1, 2013 as per AMFI Circular dated August 27, 2013 from the date of transaction either by providing the EUIN details or the declaration signed by the investor in separate Form.

In case EUIN is not provided within 30 days, brokerage/ commission on the concerned transaction shall be forfeited permanently.

With effect from July 1, 2014, (as per AMFI’s recommendations), the remediation period has been changed to 7 days from the end of the month in which the transaction is submitted. For example, all those transactions which are submitted during July 2014 without EUIN have to be remediated as per the process stated above on or before August 7, 2014.

What needs to be done if a transaction is routed through an ARN but EUIN is not mentioned in the transaction slip?

As per the provisions of SEBI in the circular date 27th August 2013, that EUIN is mandatory for non-advisory transactions (execution only) also, though the advice relating to the scheme or asset class is only incidental. However, in case of any exceptional cases where there is no interaction by the employee/sales person/relationship manager of the distributor/sub broker with respect to the transaction, AMCs shall take the declaration separately signed by the investor.

Please get a declaration signed from the investor within 30 days# which states:

I/We hereby confirm that the EUIN box has been intentionally left blank by me/us as this transaction is executed without any interaction or advice by the employee/relationship manager/sales person of the above distributor/sub broker or notwithstanding the advice of in-appropriateness, if any, provided by the employee/relationship manager/sales person of the distributor/sub broker.”

For transactions received on or after April 1, 2014, in case the above declaration is not provided within 30 days, brokerage on the transaction shall be forfeited permanently.

Will transaction charges be applicable for Invalid EUIN transactions and paid to the distributor?

Transaction charges are termed as Incidental Expenses which will be deducted and paid to the distributor for invalid EUIN transactions.

If a common transaction slip (made by distributors) and EUIN is mentioned, will it be accepted?

In such a case, the transaction slips will be accepted subject to Compliance approved. Further, care should be taken to ensure that EUIN should be clearly mentioned on the slip to avoid data capture error

 

What needs to be done if the Investor wants to change the EUIN?

The EUIN can be changed if received within the stipulated period for remediation (30 days from the date of transaction for transactions submitted post October 1, 2013). The Investor must ensure the EUIN is valid and tagged to the ARN holder that has not expired

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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