Employee Unique Identification Number

Frequently Asked Questions

[FAQs]

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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 the Corporate
Distributors 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. It will be allotted to each Sales Person holding a valid NISM certificate and associated
with an ARN holder.

Benefit of EUIN:

• EUIN aims to inculcate a sales responsibility to the employee/relationship manager/sales person

and thereby make all salespersons responsible for their actions.
• EUIN assists in tackling the problem of mis-selling even if the sales person leaves the
employment of the distributor or his/her sub broker.

Frequently Asked Questions

1. Is EUIN applicable for all investments?

No. EUIN is applicable only for Investments routed via distributors.

2. Is EUIN applicable to all the Distributors?

EUIN is applicable to sales persons of all ARN holders (both Individual and Non-Individual).

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

Yes. Please refer the table below.

Advisor ARN Sub-Broker* / Sub-Broker ARN Representative EUIN

Branch code
ARN of the main As allocated by the ARN of the Sub- 1. If the main distributor / sub-
distributor main distributor to Broker (Allotted broker is an individual without
the Sub-Broker by AMFI) any employees, then their own
EUIN is to be provided (in
*This is the internal addition to ARN).
code provided by
the Main ARN 2. If the distributor is of non-
holder to his Sub Individual category or an
Broker individual with employees,
then the employee’s
representative EUIN is to be
provided.

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4. What needs to be done if a transaction is routed through a broker but does not involve an
EUIN (Execution Only transactions)?

The EUIN field in the application form should be kept blank. The investor must complete the
declaration section in the application form duly signed by all holder(s). The relevant section in
the application form is reproduced below for easy reference.

5. What are the applicable transactions types for EUIN?

New Purchase, Additional Purchase, Fresh SIP, Switch, Fresh STP, Fresh DTP.

6. What are the transactions types excluded from EUIN?

Ongoing SIP, Ongoing STP, Ongoing DTP, Dividend Reinvestment, Bonus Units Redemption, SWP

7. Who will maintain the EUIN?

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

8. 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.
9. 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.

10. What is the expectation from an ARN holder when a Sales Person who was involved in
the sales of the mutual fund leaves his firm?

ARN holders shall notify AMFI-unit of CAMS about such Sales Person joining or exiting
the organization quoting the employee’s EUIN at the earliest.

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

In case of any complaint against a Sales Person, AMFI ARN Committee shall carry out an
investigation and advise AMFI-unit of CAMS about the continuation or suspension of the
EUIN.

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12. What does an Invalid EUIN mean?

The following situations are considered as Invalid EUIN:

a. EUIN not available in the EUIN master provided by AMFI unit of CAMS
b. EUIN beyond the validity period
c. Incorrect EUIN detail in the application form
d. EUIN not mentioned & Investor declaration not provided in the application form
e. Change of EUIN (EUIN moving from one ARN to Another ARN not updated in the database
provided by AMFI unit of CAMS)

13. What is the impact on the commission for Valid/Null/Invalid EUIN or Sub-Broker ARN?

The impact on the commission for Valid/Null/Invalid EUIN is as follows:

Transaction Commission Communication

Sl.
Scenario Assumptions Charges to to be Paid?
No
be paid?
1 Valid Main ARN + Process the transaction Yes Yes SMS, Email &
Valid EUIN and send confirmation Letter –
to Distributor confirmation
2 Valid Main ARN + Commission on this No No SMS, Email &
Invalid EUIN transaction should be Letter should be
withheld until the valid generated for
Invalid EUIN means: EUIN code is furnished these cases for
via unsolicited file intimating the
a. EUIN not ARN holder to
provided by AMFI furnish the
unit of CAMS correct EUIN to
b. EUIN beyond the CAMS
validity period
c. Incorrect EUIN
detail in the
application form
d. Change of EUIN
(EUIN moving
from one ARN to
Another ARN not
updated in the
database
provided by AMFI
unit of CAMS)
3 Valid Main ARN + Process the transaction Yes Yes SMS, Email &
EUIN field left blank + and send confirmation Letter –
Declaration signed by to Distributor confirmation
investor
4 Valid Main ARN + Commission on this No No SMS, Email &
EUIN field left blank + transaction should be Letter should be
Declaration not signed withheld until the valid generated for
by investor EUIN code / declaration these cases for

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 Transaction Commission Communication
Sl.
Scenario Assumptions Charges to to be Paid?
No
be paid?
is furnished via written intimating the
request with investor ARN holder to
consent to front office. furnish the
correct EUIN to
CAMS
5 Invalid Main ARN + Commission on this No No No
Valid EUIN transaction should be (Follow the
withheld until the Main existing process
Invalid Main ARN ARN empaneled with FT i.e. based on
means:- Distributor
• Not empanelled Update the KYD status query)
with FT & COC
• Incorrect ARN
detail in the
application form
6 Invalid Main ARN + Commission on this No No No
Invalid EUIN transaction should be (Follow the
withheld until the Main existing process
ARN empaneled with FT i.e. based on
Distributor
query)
7 Valid Main ARN + Process the transaction Yes Yes SMS, Email &
Valid EUIN + Valid Sub and send confirmation Letter –
Broker ARN to Distributor confirmation
8 Valid Main ARN + Commission on this No No SMS, Email &
Invalid EUIN + Valid transaction should be Letter should be
Sub Broker ARN withheld until the valid generated for
EUIN code is furnished these cases for
via unsolicited file intimating the
ARN holder to
furnish the
correct EUIN to
CAMS
9 Invalid Main ARN + Commission on this No No No
Valid EUIN + Valid Sub transaction should be
Broker ARN withheld until the Main
ARN empaneled with FT
10 Invalid Main ARN + Commission on this No No No
Invalid EUIN + Valid transaction should be
Sub Broker ARN withheld until the Main
ARN empaneled with FT

14. 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:

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 Main ARN Sub-Broker ARN EUIN Remarks

Provided Not provided Provided In this case EUIN will be matched with
Main ARN only
Provided Provided Provided In this case EUIN will be matched with
Sub-Broker ARN only

15. What action would be taken if the distributor is unable to provide the EUIN or the signed
investor declaration within 90 days?

In case EUIN or the declaration is not provided within 90 days, brokerage/commission on the
transaction shall be forfeited permanently. This validation will be applicable only for the
transactions registered from June 1st 2013 onwards.

16. What is the mode of communication and frequency for raising clarification with the
distributors?

a) SMS would be triggered on a daily basis only when EUIN or Sub Broker ARN is invalid
b) Email communication would also get triggered on a daily basis
c) Letter communication (for Distributors who do not have email id) would be sent on a
weekly basis

17. What is ‘mis-selling of mutual funds’?

SEBI has declared mis-selling of mutual funds as one of the Fraudulent and Unfair Trade
Practices relating to Securities Market.

Mis-selling of mutual funds has been defined as ‘sale of units of a mutual fund scheme by any
person, directly or indirectly, by ─
o making a false or misleading statement, or
o concealing or omitting material facts of the scheme, or
o concealing the associated risk factors of the scheme, or
o not taking reasonable care to ensure suitability of the scheme to the buyer’

18. What is the revised Implementation Date?

AMCs are advised to put in place necessary systems and processes in order to implement the
above guidelines by June 1, 2013. The following modes which shall be implemented by August 1,
2013:
o Mobile Transactions/ SMS based
o Stock Exchange Platform
o ATM based
o Call Center originated

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