ANNEXURE B
Specimen of letter / email to be sent to MF clients by an individual distributor who plans to convert his/her mutual fund
distribution business from ‘Individual’ to a ‘Corporate’ model
On the Distributor’s Letter Head
Date: ___________________
To,
Name &
Address of Investor:
----------------------------------------
Dear Sir/ Madam,
Sub: Proposed Change of distributor code (ARN) in respect of your Mutual Fund Folios
At the outset, I would like to thank you for being my valued client and investing in mutual funds
through my distributorship under AMFI Registration Number (ARN _______________).
I am happy to inform you that I have decided to convert my mutual fund distribution business to a
corporate structure. In this regard, I have set up a company / firm named _________ Name of the new corporate
entity________________________________________________________________________________________________________________________
which is registered with AMFI under ARN_____________
In this regard, I have requested all the concerned asset management companies (AMCs) to replace my
ARN _______________ in the MF folios of all my mutual fund clients (including yourself) currently
linked to my/our ARN _______________ under all the schemes of their respective mutual funds with
the ARN ______________ of the above mentioned new entity.
Once the respective AMCs complete the necessary action in this regard, my ARN / distributor code in
all of your mutual fund folios will be replaced by ARN ___________ of above mentioned entity.
Kindly note that I will continue to provide you my services in respect of all your mutual fund
investments, but under the new corporate name and ARN. Also, kindly note that there will be no
change in your mutual fund holdings whatsoever.
In this regard, if you do not wish to transfer your MF holdings/folios to the new ARN __________ of
the aforesaid entity set up by me, and/or wish to shift to some other mutual fund distributor or
investment adviser, OR wish to SWITCH your units to Direct Plan, you are requested to inform the
concerned AMCs accordingly through a written communication within 15 days from the date of this
letter /email i.e., by DD-MMM-YYYY.
Please note that if the AMC(s) do not receive any written communication/objection from you for the
proposed change in the distributor/ARN code within 15 days i.e., by DD-MMM-YYYY, it will be
deemed that you have no objection for the proposed change of distributor code and the concerned
AMC/RTA shall proceed with the change the ARN code in your mutual fund folios as above, i.e., the
distributor code in your existing MF folios / unit holdings under my ARN -_____________ shall be
shifted under the ARN _______________ of the aforesaid entity.
If you wish to shift your mutual fund holding / folios under my ARN to some other mutual fund
distributor, you will need to submit a written request to the concerned AMC / RTA specifying the name
and ARN the mutual fund distributor within 15 days of this email/letter.
If you decide to Switch your Units from Regular Plan to Direct Plan, you will need to submit a Switch
request in the prescribed format to the concerned mutual fund AMC / RTA to shift all mutual fund units
in your folio under my/our ARN _____________ to Direct Plan, within 15 days of this email/letter.
[Note: Please note that as per current Income Tax laws, switching of Units from a Regular Plan to a
Direct Plan (or vice-versa) within the same mutual fund scheme is subjected to Capital Gains Tax, even
though there is no cashflow involved.]
Kindly note that if you have no objection to the aforesaid change of distributor / ARN code in
respect of your MF holdings/folios to ARN _____________ of the aforesaid transferee distributor,
then no action is required from you.
I look forward continue to provide you my services in respect of all your mutual fund investments as
done so far, but under the new corporate name and ARN.
Thanking you,
Yours sincerely,
Name:
ARN:
