How to become mutual funds distributor in India?

Mutual Funds | admin | November 22, 2011 at 9:47 am

In order to join our successful Distributor community you will need to get yourself empanelled as an authorized Distributor of Mutual Fund.

The following are the simple steps for becoming a Distributor of Mutual Fund.

Get yourself certified (if not previously certified) by National Institute of Securities Markets (NISM), by taking theNISM Mutual Fund Distributors Certification Examination. National Institute of Securities Markets (NISM) is a public trust, established by the Securities and Exchange Board of India (SEBI), the regulator for securities markets in India. NISM seeks to add to market quality through educational initiatives. It is an autonomous body governed by its Board of Governors. Clearing the NISM test has been made mandatory by the Securities and Exchange Board of India (SEBI) and can be taken at different cities. The certification examination consists of 100 questions of 1 mark each and should be completed in 2 hours. The passing score for the examination is 50%. There shall be negative marking of 25% of the marks assigned to a question. Registration is done through NSE, BSE or MCX-SX. All other details including the new study material is available on the website of NISM - Download Workbook

After becoming NISM certified by clearing the test, you will have to fill up an empanelment form, available with all mutual fund AMC's. A copy of theempanelment form, duly filled, along with the attached ARN Certificate (AMFI Registration Number) should be sent to mutual fund offices, from where the Distributor proposes to operate.

Mutual Fund company will review the form following which the prospective Distributor will receive an empanelment letter and code number, along with all necessary material (forms, fact sheets, marketing material etc). This means that he is now a full-fledged Distributor of a mutual fund company

Please note that you need to fill out separate empanelement form with all the mutual fund companies with which you want to do the business.

The official website of NISM is here.

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