If you have checked new mutual fund application form then you will find one more column has been added in line where one need to enter details like ARN No,Sub-Broker Code Etc & this column is for EUIN – Employee Unique Identification Number.
What is EUIN:
Activities done by distributors have significant impacts on the mutual fund industry.SEBI has directed AMFI to create an Unique identification no of the employee / Relation manager / Sales person of the distributor interacting with the investor for sale of mutual funds….EUIN will be in addition to ARN number.
Why EUIN:
Answer is to curb mis-selling.EUIN will assist in addressing mis-selling even if employee / Relation manager / sales person later leaves the employment.
EUIN will not be applicable for Overseas distributors.
EUIN would be applicable for the transactions like Purchase,Switches,Registrations of SIP/STP/Trigger STP/Sweeping of dividends.
When its necessary to quote EUIN:
EUIN will be applicable only if transaction is advisory in nature.E.g. if any investor invests in any mutual fund scheme by his choice then there won’t be any case of mis-selling…which is called “Execution only transaction”.In such cases investors need to check box next to declaration which states that “I/We hereby confirm that where EUIN space has been left blank by me/us, transaction is of Execution only nature “.
But if transaction is of advisory in nature then quoting EUIN is mandatory.
Electronic or online transactions would also have provisions of EUIN & it will be investors duty to verify & quote the number ..if he is opting for his advice.
