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Distributor vs RIA is a fundamental business-model choice. SEBI’s separation prevents conflict of interest; you must commit to one.
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Step-by-step procedure
See the procedure infobox above for the six steps.
Side-by-side comparison
Aspect
Distributor (ARN)
RIA
Regulator
AMFI
SEBI
Revenue
Trail commission
Client fee
Fiduciary
No
Yes
Net worth
None
Rs 5 lakh
Cost to enter
Rs 5,000-7,000
Rs 50,000+
Compliance burden
Light
Heavy
Conflict of interest
Inherent (commission-driven)
Eliminated (fee-only)
Client base
Volume / retail
Premium / advisory
Combination not permitted
SEBI’s 2013 RIA Regulations + AMFI norms: cannot hold both ARN and RIA. Must choose.
Step-by-step procedure for adding an old mutual fund folio to a platform / aggregator (Coin, Groww, Kuvera, MF Central, MFU). Covers folio …
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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.
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