Dear Distributor

Dear Distributor, As per SEBI circular dated September 13, 2012, directed AMFI to create unique identification number (EUIN) of the employee / relationship manager / sales person of the distributor interacting with the investor for the sale of mutual fund products. Accordingly AMFI, has issued EUIN to all the employee/relationship manager/sales person of all the distributors.

What is Employee Unique Identification Number (EUIN):

AMFI has allotted EUIN to all ARN holders and their employees who interact with the investor for the sale of mutual fund products. EUIN is alpha-numeric, with one alphabet and six numerals, for example E123456.

What is the benefit of providing EUIN?

EUIN will assist in tackling the problem of mis-selling even if the employee/relationship manager/sales person leave the employment of the ARN holder / Sub broker. Mutual funds are required to capture the EUIN, in addition to the AMFI Registration Number (ARN) of the distributor.

Is it mandatory to provide the EUIN in transaction?

 EUIN is applicable for transactions routed through an ARN holder, which are Advisory in nature, i.e. investment is being made on the basis of advice provided by the employee / relationship manager / sales person of the distributor.  In case of Execution-only transaction, the following declaration available in application form should be ticked by the investor. "I/We hereby confirm that the EUIN box has been intentionally left blank by me/us as this is an "execution-only" transaction without any interaction or advice by the employee/relationship manager / sales person of the above distributor or notwithstanding the advice of in-appropriateness, if any, provided by the employee/relationship manager/sales person of the distributor and the distributor has not charged any advisory fees on this transaction". The transactions will not be rejected if EUIN is incorrect / wrong mapping. Kindly refer the appended matrix. Intimation regarding brokerage held cases shall be available on karvymfs website and in MFSD201 report. If the distributor is not registered for online access, intimation will be triggered through email on fortnightly basis.

1 Valid main Valid sub EUIN mapped with main Process Pay brokerage broker code broker code broker or sub broker transaction 2 Valid main In valid sub EUIN mapped with main Process Pay brokerage broker code broker code broker transaction 3 Invalid main Valid sub EUIN mapped with sub Process Hold brokerage broker code broker code broker transaction for remediation 4 valid main Valid sub EUIN not available and Process Pay brokerage broker code broker code declaration is ticked transaction 5 valid main Valid sub EUIN not available and Process Hold brokerage broker code broker code declaration not ticked transaction for remediation 6 No main No sub broker EUIN available Process Application broker code code transaction consider as “Direct” Transactions routed through Channel Partners:

 Provision has been created to capture EUIN number in the feed file from the distributor. If the field EUIN_Opt is “Y” then EUIN number is mandatory. If EUIN_Opt is “N” then EUIN column can be left blank.

Applicable Transactions:

 EUIN is applicable for Purchases, Switches, Fresh Registrations of SIP / STP / Trigger STP / Dividend Transfer Plan.  EUIN is not applicable for ongoing SIP/ STP / SWP / STP Triggers (registered prior to June 1,2013), Dividend Reinvestments, Bonus Units, Redemption, SWP Registration, Zero Balance Folio creation and installments under Dividend Transfer Plans.

What is the Effective Date for EUIN and for what modes of transactions is EUIN applicable?

Effective June 1, 2013, EUIN is applicable for transactions received through all modes, except for the following modes which shall be implemented by August 1, 2013: I. Mobile / SMS based transactions. ii. Transactions received through Stock Exchange Platform. iii. ATM based transactions. iv. Call Center originated transactions.

Invalid EUIN:

The following situations are considered as Invalid EUIN:

a. EUIN not available in the EUIN master. b. EUIN beyond the validity period. c. Incorrect EUIN detail in the application form. d. EUIN mapped to an ARN holder / Sub broker ARN holder different than the ARN mentioned in the transaction. e. EUIN number left blank and no declaration selected / ticked.

EUIN Remediation:

In case of EUIN is Invalid or wrong mapping of EUIN, the same will be intimated to the distributor for rectification. The distributor should provide a written request signed by the investor to rectify the EUIN number or provide the declaration.

Impact on Brokerage:

 EUIN is Invalid or the EUIN is left blank and declaration is not selected, then the brokerage for the said transaction will be withheld. If the remediation is done before 90 days from the date of transaction then brokerage will be released in the subsequent cycle. If the rectification is happened after 90 days the withheld brokerage and the subsequent brokerage will be forfeited. EUIN Flags in MFSD201:

Valid Declaration Definition Action by distributor Flag Flag BY Null EUIN is valid with the main ARN No remediation required code SY Null EUIN valid with sub broker ARN No Remediation required, Brokerage code payment is subject to mail ARN validity / empanelment N Null EUIN not matched with ARN or Remediation required Sub ARN, hence invalid Null Y EUIN is blank / invalid/ but No Remediation required investor ticked declaration Null N EUIN is blank and Investor not Remediation required ticked declaration Null Null EUIN is blank and Investor not Remediation required ticked declaration Y Null EUIN is valid with the main ARN No Remediation required, Brokerage code/Sub broker ARN code payment is subject to mail ARN validity / empanelment N N EUIN is blank and Investor not Remediation required ticked declaration Y Y Not a valid combination Remediation required

N Y EUIN is blank / invalid/ but No Remediation required investor ticked declaration SY N EUIN is valid with the main ARN No Remediation required, Brokerage code/Sub broker ARN code payment is subject to mail ARN validity / empanelment BY N EUIN is valid with the main ARN No Remediation required, Brokerage code/Sub broker ARN code payment is subject to mail ARN validity / empanelment Null BY Not a valid combinations Remediation required