Don’t buy funds if EUIN is missing4 min read . Updated: 04 Jun 2013, 07:31 PM IST
If you are using your bank to buy funds, don't sign the 'execution-only' declaration.
OK. So there is one more acronym to remember and deal with. Jostling for space with PAN, KYC and UID is a newly born creature. Meet the little fledgling—it’s called the EUIN or the Employee Unique Identification Number. When it grows up, it will cover the three million sellers of financial products in India. To see why it was born, we’ll have to go back to the 13 September, 2012, circular of the capital market regulator (https://bit.ly/11TWCtu) that laid out the road map of change for mutual fund (MF) manufacturers and sellers. Titled ‘Steps to Re-energise the Mutual Fund Industry’, the circular used carrot and stick to get the industry to do more than chase after the wholesale part of the market. Buried in the section that dealt with the distribution of MFs was a direction to the industry association, the Association of Mutual Funds in India (Amfi), that it should “create a unique identity number of the employee/ relationship manager/ sales person of the distributor interacting with the investor for the sale of MF products, in addition to the Amfi Registration Number (ARN) of the distributor." And that the MF application form should have a box for the EUIN.