KYD on WebNotes

AMFI biometric discontinuation (Circular 27)

Tue, 19 May 2026 00:00:00 +0000

AMFI Circular 27 discontinued the biometric (fingerprint) capture requirement for the Know Your Distributor (KYD) process, simplifying the ARN application workflow. The circular reflected an industry consensus that biometric capture, while introduced for identity-verification rigour, had become operationally burdensome with limited incremental value given alternative verification methods (PAN, Aadhaar, photograph, document originals).

For aspiring mutual fund distributors, the discontinuation simplified the ARN onboarding workflow. KYD applicants no longer needed to visit a CAMS / KFin centre solely for biometric capture; document submission and verification could be completed digitally.

KYD: Know Your Distributor process

Tue, 19 May 2026 00:00:00 +0000

Know Your Distributor (KYD) is the AMFI-mandated identity verification and credential check that every mutual fund distributor must complete before receiving an ARN . KYD parallels the well-known KYC (Know Your Client) but applies to distributors rather than investors. The objective is to ensure all ARN-holders are correctly identified, qualified, and traceable.

For aspiring mutual fund distributors, KYD is one of two prerequisites (the other being NISM Series V-A certification) for ARN issuance.

AMFI Circular 27 -- biometric KYD discontinuation

Tue, 12 May 2026 00:00:00 +0000

AMFI Circular 27 refers to the circular issued by the Association of Mutual Funds in India (AMFI) in 2022 that discontinued the mandatory biometric fingerprint verification requirement for the Know Your Distributor (KYD) process applicable to AMFI Registration Number (ARN) holders. The circular replaced the biometric fingerprint collection requirement with digital alternatives – specifically, Aadhaar-based OTP authentication and video-based KYD (V-KYD) – for new ARN applications and subsequent renewals.

The circular was a significant operational change in the ARN registration process, addressing longstanding industry complaints about the inconvenience and geographic inaccessibility of the biometric collection infrastructure, particularly for distributors in smaller cities and rural areas.

AMFI Registration Number (ARN)

Tue, 12 May 2026 00:00:00 +0000

The AMFI Registration Number (ARN) is a unique alphanumeric identifier issued by the Association of Mutual Funds in India (AMFI) to individuals, firms, companies, and other entities that wish to distribute or solicit subscriptions to mutual fund units on behalf of investors in India. No person may act as a mutual fund distributor or receive commissions from an asset management company (AMC) without holding a valid ARN. The requirement derives from SEBI ’s Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, and is administered operationally by AMFI through its ARN issuance infrastructure.

Know Your Distributor (KYD)

Tue, 12 May 2026 00:00:00 +0000

Know Your Distributor (KYD) is a mandatory identity and integrity verification process that must be completed by all individuals and entities holding or applying for an AMFI Registration Number (ARN) in India. Administered by the Association of Mutual Funds in India (AMFI) , KYD verifies the distributor’s identity, address, qualifications, and NISM certification status and creates a compliance record that is a precondition for commission payments from asset management companies (AMCs). An ARN holder who has not completed KYD, or whose KYD compliance has lapsed, is ineligible to receive commissions until compliance is restored.