NEW DELHI: The Association of Mutual Funds in India (Amfi), the mutual fund industry trade body and registering body for mutual fund distributors, cut the ARN (AMFI Registration Number) registration and renewal fees for most distributor types by 50 per cent. The new rates will come into effect from May 1, 2021.
The ARN registration and renewal fees for individuals and proprietorship firm has been reduced by 50 per cent to Rs 1,500 and Rs 750, respectively, while for post office and microfinance institutions (MFIs), the ARN registration and renewal fees stand reduced by 50 per cent to Rs 7,500 and Rs 3,750 respectively.
Amfi also cut the EUIN (Employee Unique Identification Number) registration and renewal fees for the employees to Rs 500 from Rs 1,500 and Rs 750, respectively.
Urban cooperative banks, societies, trusts, HUFs and partnership firms will now pay registration and renewal fees at Rs 10,000 and Rs 5,000 respectively, while one person company (OPC), LLPs, and private limited companies would pay Rs 20,000 and Rs 10,000 respectively. All fees will be subject to applicable taxes.
The primary motive behind reduction in fees is to encourage new and young individuals across the country to reach out to a large base of small savers, especially in the Tier II and III cities and towns, to channelize financial savings into mutual fund asset class.
“We aim to have a greater number of small savers to benefit from long term investment solutions offered by the mutual fund industry. This initiative of reducing the registration and renewal fees would help a larger number of individuals from across the country to come into the Mutual Fund distribution fold and contribute to the last mile connectivity,” said Nilesh Shah, Chairman, Amfi.