Mutual and other Funds

43. '' To curb such unethical practices , the Association of Mutual Funds in India (AMFI) regulates the distributors.'' In this context, explain the AMFI regulations of distributors.

Ans: AMFI Regulation of Distributors : Intermediaries play a pivotal role in promoting sale of Mutual Fund scheme . AMFI has therefore taken the initiative of developing a cadre of trained professional intermediaries .SEBI has made AMFI Certification compulsory for all distributors of Mutual Fund schemes.All intermediaries including distribution companies are required to obtain ARN card from AMFI.The AMFI Certification is designed to be a professional qualification that provides intermediaries with a thorough understanding of Mutual Funds and on how to present them appropriately to clients.