AMFI Full Form, Roles and Responsibilities

AMFI full form is Association of Mutual Funds in India. It is a non-profit industry body that represents Asset Management Companies (AMCs) of mutual funds registered with the Securities and Exchange Board of India (SEBI). 

The association is committed to growing the Indian mutual fund industry along professional and ethical lines. It protects and promotes the interests of mutual funds and their unit holders. 

What is Full Form of AMFI in Mutual Fund?

In the mutual fund industry, AMFI full form is Association of Mutual Funds in India. It is an industry body incorporated on 22 August 1995 for the purpose of representing the AMCs of all mutual funds that are registered with SEBI. All the 44 AMCs in India that are currently registered with SEBI are members of AMFI association. 

AMFI is a member of the International Investment Funds Association (IIFA), a global federation that brings together national investment fund associations from multiple countries. 

At present, the IIFA consists of 38 national associations and 2 regional associations. These associations represent the investment funds industry, and several of them also advocate for the broader fund ecosystem.

Roles and Responsibilities of AMFI

Since numerous schemes of MFs are available in the market, some AMC  might attempt to dupe the investors. However, the presence of AMFI ensures transparency, standardization and investor protection through strict regulations and a code of conduct for AMCs. 

Let’s look into the key roles and responsibilities of AMFI:

• AMFI’s primary role is to protect the investor’s rights as well as their interests.

• It formulates new regulations and policies in order to keep transactions safe and secure for the MF investors.

• It is responsible for keeping an eye on all the transactions closely to track discrepancies during buying or selling of the fund units.

• The non-profit industry body promotes MFs across India with the intention of increasing the number of investors who invest in MF schemes. Making MFs available over several online platforms was one of the major steps that AMFI took. Also, it made MFs more easily accessible to a larger number of investors.

• AMFI’s strict authorization rule ensures that every entity partaking in fund transactions is legally authorized to do so. As a result, every mutual fund’s distributor and advisor is bound to get AMFI registration before they can conduct transactions pertaining to MFs.

• The association also has the responsibility to make sure the fund practices are professional as well as ethical across all the platforms. The panel of the association discusses, demonstrates and imposes these regulations and reviews their effectiveness periodically.

Committees of AMFI

AMFI operates through several committees, including the following:

• AMFI Financial Literacy Committee

• AMFI Committee on Certified Distributors (ARN Committee)

• AMFI ETF Committee

• AMFI Committee on Operations, Compliance, and Risk

• AMFI Valuation Committee

• AMFI Equity CIO Committee

These committees allow AMFI to focus on various aspects like education, compliance, valuation and equity, and ensure the mutual fund industry functions smoothly.

About AMFI Registration Number (ARN)

The AMFI Registration Number (ARN) is a unique, distinctive code assigned by AMFI to mutual fund distributors, agents and intermediaries. It acts as a professional credential within the mutual fund sector.

To obtain an ARN, candidates must clear a certification exam conducted by the National Institute of Securities Markets (NISM), a public trust set up by SEBI that provides training programs related to the securities market. 

Senior citizens, however, are required to complete the Continuing Professional Education (CPE) program instead. Without this registration number, no individual or entity is permitted to market or advise on mutual funds to investors.

Conclusion

AMFI stands for Association of Mutual Funds in India. It is a non-profit Indian trade association for all the asset management companies of SEBI-registered MFs in India. It is responsible for issuing the AMFI Registration Number (ARN), which is required for individuals to become registered mutual fund distributors (MFDs) in India. 

Want to become an MFD in India? Connect with Registrationwala for assistance in securing MFD license. Our expert team will help you in the entire application filing process, so you can get your license in a smooth and hassle-free manner.

Frequently Asked Questions (FAQs)

Q1. What is AMFI?

A. AMFI is an Indian trade association that represents AMCs of mutual funds registered with SEBI.

Q2. How many members does AMFI consist of?

A. AMFI consists of a total of 44 members. All the members are currently registered with SEBI.

Q3. When was AMFI established?

A. AMFI was established on 22 August 1995.

Q4. What is AMFI Registration Number?

A. AMFI Registration Number (ARN) is a unique registration number issued by AMFI to MF distributors in India.

Q5. Which authority issues registration numbers to mutual fund distributors?

A. The AMFI issues AMFI Registration Numbers to mutual fund distributors in India. These ARNs are a mandatory requirement for distributors to become authorized to sell mutual funds.

Q6. How many committees does AMFI have?

A. AMFI has several committees, namely: Financial Literacy Committee, Operations & Compliance

Committee, Risk Committee, Committee on Certified Distributors (ARN Committee), Equity CIOs Committee, Valuation Committee, and ETF Committee.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.