FAQs -
Employee Unique Identification Number (EUIN)
What is a EUIN?
Pursuant to a SEBI circular in 2012, Mutual Funds have to create a 'Unique Identity Number' of the employee / relationship manager/ sales person of the distributor who advises (or interacts with the investor in any other manner) for the sale of any mutual fund scheme. This is in addition to the AMFI Registration Number (ARN) of the distributor. EUIN is the acronym for this new unique number.
Why do we need to create this additional layer of disclosure when the ARN is already mentioned?
Unlike the ARN which is common to the entire organisation, the EUIN is unique to that specific employee. Assigning this specific number, which is distinct from the company's ARN, helps to affix responsibility for mis-selling. Besides, this number will remain in force even if the employee/relationship manager/sales person moves from one employer to another, thereby facilitating an audit trail.
Is it mandatory to quote the EUIN?
It is mandatory to enter the EUIN in the relevant box on the Application Form (in addition to the ARN) in the case of all advisory transactions.
It is NOT mandatory to enter the EUIN if it is an 'Execution Only' transaction. However, in such cases, the ARN Holder should tick the box which has the declaration from the ARN Holder that states
“I/We hereby confirm that where the EUIN space has been left blank by me/us, the transaction is an execution-only transaction”.
Is quoting of EUIN mandatory for all transactions?
As per SEBI, this number is applicable for transactions such as Purchases, Switches, Registrations of SIP / STP / Trigger STP / Dividend Transfer Plan.
It is not applicable for transactions such as Installments under SIP/ STP / SWP / STP Triggers, Dividend Re-investments, Bonus Units, Redemption, SWP Registration, Zero Balance Folio creation and installments under Dividend Transfer Plans.
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does not offer the Dividend and Trigger options, the above stipulations pertaining to Dividends and Triggers do not apply to us as of date.
Is this stipulation applicable for all the Distributors?
Yes. While formerly it was applicable only for corporate employees, it has now been extended to IFAs as well, irrespective of whether they employ others or not.
All salespersons of non individual ARN holders (whether acting in the capacity of the main distributor or sub broker) should obtain the EUIN.
Individual/Sole Proprietorship ARN holders should intimate the AMFI-unit of CAMS in case they employ any Sales Person so that the EUIN could be allotted to them. Further, EUIN will not be applicable for overseas distributors who comply with the requirements as per AMFI circular CIR/ ARN-14/12-13 dated July 13, 2012.
Distributors, please note:
Please ensure that the sub-broker affixes his/her ARN code in the column separately provided in addition to the current practice of affixing the internal code issued by the main ARN holder and the EUIN of the Sales Person (if any) in the EUIN space.
CAMS has also sent a letter to individual Corporate employees who are already registered and have requested them to return the ARN card along with two stamp size photos and the tear of portion of the letter for issue of EUIN. In case the employee does not return the corporate employee ARN card issued earlier, any misuse of the same will be at the risk, responsibility and liability of the Corporate distributor/employee.
What should investors watch out for?
Please ensure that the Application Form/SIP Form/Transaction Form if routed through a Distributor shall have a valid ARN code, Sub-broker ARN code, and EUIN.
Please use only those Application Forms/SIP Forms/Transaction Forms which have spaces for the Sub-broker ARN code and the EUIN.
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