TEST FOR SELLING MUTUAL FUND

AMFI REGISTERED MUTUAL FUND ADVISORS (ARMFA)

Intermediaries play a pivotal and valuable role in promoting sale of Mutual Funds. It is therefore vital
that those engaged in selling Mutual Funds have the highest standards of knowledge attitude and
ethics. Their well being, quality orientation and ways of doing business will have a significant impact
on how the Mutual Fund Industry develops in the future.
AMFI introduced the process to register the intermediaries who have passed the certification test as
AMFI Registered Mutual Fund Advisors (ARMFA), thus laying the foundation for an organized industry
and allotting a unique code-AMFI Registration Number (ARN) alongwith an identity card. SEBI
recognizing the importance of this initiative taken by AMFI had made Registration with AMFI after
passing AMFI Certification Test compulsory for intermediaries.
SEBI has clarified that after obtaining certification as per changed mandate, the requirement of
registration with AMFI in terms of its circular dated November 28, 2002 would continue.

As such, all AMFI/ NISM Certified Intermediaries engaged in marketing and selling of Mutual Fund
schemes are required to be registered with AMFI after passing AMFI/ NISM Certification Test. The
Mutual Funds will not be able to deal with intermediaries who are not registered with AMFI and
obtained ARN.

EMPLOYEES OF CORPORATE (NON-INDIVIDUAL) ARMFA

In terms above mentioned notification and SEBI circular, employees of Corporate (non-individual)
ARN holders who are engaged in marketing of Mutual Funds Products, are also required to pass test
and register with AMFI.

AMFI Registration Number (ARN) : SALIENT FEATURES

The AMFI Registration Number (ARN) has been introduced as the unique code, which identifies the
intermediary as ARMFA.

• ARN is a unique number allotted to:

a. Individual agents, brokers, and other intermediaries engaged in selling Mutual Funds,
having passed the AMFI/NISM Certification Test and agreeing to abide by the code of
conduct.
b. Corporates engaged in the business of selling Mutual Funds, which apply to AMFI and
agree to abide by the code of conduct.

• A photo identity card indicating the validity period of ARN, would be issued to persons
applying for allotment of ARN, after passing the AMFI/ NISM test.

a. Individual intermediaries would have a card with their unique ARN and his/ her name
and photo.
b. Employees of corporates would have a card with the ARN of their employer and his/
her name and photo.

• Corporates would be issued Certificate of Registration indicating validity period of ARN. The
application for registration of corporate bodies should compulsorily be accompanied
by the application for registration of corporate employee.

• Passing certificate issued by National Institute of Securities Market (NISM) in respect of 'NISM
- Series V-A : Mutual Fund Distribution Examination' has validity period of three years.
 Accordingly, ARN issued against such certificates as well as renewed ARN on or after June 1,
2010 shall have validity period of three years. In case of corporate entities validity period for
Certificate of Registration issued is 3 years.

• No distributor shall hold more than one ARN card/ Certificate of Registration

• After obtaining ARN, the intermediaries should approach the AMCs for empanelment
and they can canvass Mutual Fund business of the respective AMCs only after
empanelling with them.

• Registered intermediaries can be de-registered as the ultimate censure, for the following
reasons:

a. Violation of the code of conduct.

b. Being indicted for serious offences by a regulatory authority.
c. Complaints of gross negligence upheld by a consumer court.

AMFI Guidelines & Norms for Intermediaries ("AGNI")

In order to promote best practices and ethical standards in the business of sale of Mutual Fund
schemes, AMFI has formulated broad guidelines and norms including a code of conduct for the
intermediaries, which will be applicable to ARMFA.

AMFI believes that a sincere endeavor to adhere to the guidelines and the code would help promote
best and healthy practices in the area of sales and marketing which would ultimately benefit all
concerned - the investor, the intermediary and the industry as a whole.

PROCEDURE FOR OBTAINING REGISTRATION

AMFI has authorized M/s Computer Age Management Services Pvt. Ltd. (CAMS) to act as processing
agent on its behalf for the purpose of ARN.

For registering with AMFI, Intermediaries are required to apply in the prescribed form. The form can
be obtained from the office of AMFI or any office of CAMS. Alternatively the form can also be
downloaded from AMFI's website www.amfiindia.com

The AMFI Test Programme: Objective

Mutual funds are emerging as an important financial intermediary for the investing public in India. Conceptually and
operationally they are different. The investors need to understand the working of a mutual fund and the increasingly
diverse and complex investment options brought to them by a large number of mutual funds. AMFI believes that the
key channel in bringing the mutual funds to a large number of investors all over the country is the network of
INTERMEDIARIES/DISTRIBUTORS.

The intermediaries/distributors have to take on the role of financial advisors to investors, a role for which they need
preparation. AMFI Mutual Fund Certification and Registration Programme has been put together to give the fund
distributors the knowledge and insights required for them to become both better intermediaries and more informed
mutual fund advisors. Even mutual fund employees need to understand the complexities of how the funds function
internally and externally

Test Programme
AMFI Mutual Fund Certification is based on a testing programme. There are two Modules of the test. The first is the
AMFI Mutual Fund (Basic) Module. This is a general test covering the concept, structure and other essential general
topics. This is meant for all employees of Mutual Funds (other than those who are engaged in selling
and marketing activities), general public and for those who would like to have a basic knowledge of concept and
working of Mutual Funds. Any one who desires to acquire knowledge of the functioning of the mutual fund without
seeking to become a fund distributor can take part one test independently.A certificate will be issued separately for
Basic Module test to the successfulcandidates.There is no validity period for the AMFI-Mutual Fund (Basic) Module
certification.

The second is the AMFI Mutual Fund (Advisors) Module and it covers subjects such as financial planning, risks in
fund investing, model portfolio selection in addition to the subjects covered under the Basic Module and constitute
a single certification programme which is designed for certification of fund distributors or intermediaries engaged in
selling mutual fund schemes, employees of corporate intermediaries and employees of mutual funds who are
engaged in selling and marketing activities.The validity period for the AMFI-Mutual Fund (Advisors) module
certification is for five years.

Certification Is Mandatory

The Securities and Exchange Board of India (SEBI) has made mandatory for any entity / person engaged in
marketing and selling of mutual fund products to pass AMFI certification test (Advisors Module) and obtain
registration number from AMFI. Firms and corporates will have to obtain certification of registration from AMFI and all
employees of corporate distributors engaged in selling and marketing of mutual fund products have to pass the AMFI
certification test (Advisors Module) and obtain registration with AMFI before canvassing business of mutual funds.

A Self-Study Workbook for the Test Preparation

AMFI has prepared a special comprehensive study material to help you prepare for the Mutual Fund Test. The
Testing Programme Workbook gives a detailed presentation of all relevant topics in a textbook manner with adequate
references and suggested additional reading for each chapter. Also, questions are indicated for different subjects as
illustrative examples. The book is structured and meant for self-study. The same can be obtained from the AMFI
office.
The second edition of the workbook was released in 2001 and the same has now been thoroughly revised to include
updated SEBI Regulations and a separate section on "Business Ethics in Mutual Funds". The third edition has been
released in May 2006 by AMFI.

ABOUT HDFC BANK

HDFC Bank
From Wikipedia, the free encyclopedia

HDFC Bank Ltd.

Type Public

(BSE: 500180, NYSE: HDB)

Industry Banking

Financial services

Founded August 1994

Founder(s) Deepak Parekh

Headquarters Mumbai, India

Key people Jagdish Capoor

(Chairman)

Aditya Puri

(MD)

Products Investment Banking

Commercial Banking

Retail Banking

Private Banking

Asset Management

Mortgages

Credit Cards[1]

Revenue ▲ 20,266.99 crore (US$4.48 billion)(2010)[2]

Operating income ▲ 4,419.01 crore (US$976.6 million)(2010)[2]

Profit ▲ 3,032.92 crore (US$670.28 million)(2010)[2]

Total assets ▲ US$ 39.723 billion (2009)[2]

Total equity ▼ 21,158.15 crore (US$4.68 billion)(2010)[2]

Employees 51,888 (2010)[3]

 Website HDFCBank.com

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a major Indian financial services company based in Mumbai,
incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The
Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company
(set up in 1977) of India. HDFC Bank has 1,725 branches and over 4,232 ATMs, in 779 cities in India, and all
branches of the bank are linked on an online real-time basis. As of 30 September 2008 the bank had
total assets of Rs.1006.82 billion.[4] For the fiscal year 2008-09, the bank has reported net profit of 2,244.9
crore (US$496.12 million), up 41% from the previous fiscal. Total annual earnings of the bank increased by
58% reaching at 19,622.8 crore (US$4.34 billion) in 2008-09.[5]

Contents
[hide]

• 1 History

• 2 Business focus

o 2.1 Wholesale

banking services

o 2.2 Retail banking

services

o 2.3 Treasury

• 3 Distribution network

• 4 References

• 5 External links

[edit]History

HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's
largest housing finance company. It was among the first companies to receive an 'in principle' approval from
the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a
scheduled commercial bank in January 1995 under the RBI's liberalisation policies.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in
2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of
HDFC Bank for every 5.75 shares of Times Bank.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The
amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs.89,000
crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.

[edit]Business focus
HDFC Bank deals with three key business segments - Wholesale Banking Services, Retail Banking Services,
Treasury. It has entered the banking consortia of over 50 corporates for providing working capital finance, trade
services, corporate finance and merchant banking. It is also providing sophisticated product structures in areas
of foreign exchange and derivatives, money markets and debt trading and equity research.

[edit]Wholesale banking services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corp to small &
mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of
commercial and transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured solutions, which combine
cash management services with vendor and distributor finance for facilitating superior supply chain
management for its corporate customers. HDFC Bank has made significant inroads into the banking consortia
of a number of leading Indian corporates including multinationals, companies from the domestic business
houses and prime public sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

[edit]Retail banking services

[[The objective of the Retail Bank is to provide its target market customers a full range of financial products and
banking services, giving the customer a one-stop window for all his/her banking requirements. The products
are backed by world-class service and delivered to customers through the growing branch network, as well as
through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking.]] [[HDFC
Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron)
and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001.
By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one
of the leading players in the “merchant acquiring” business with over 70,000 Point-of-sale (POS) terminals for
debit / credit cards acceptance at merchant establishments.]] The Bank is well positioned as a leader in various
net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill
Payments, etc.

[edit]Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local
Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's
Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits
in government securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.

[edit]Distribution network

An HDFC Bank Branch

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in 771 cities
across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also
serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial centres
across the country. Being a clearing/settlement bank to various leading stock exchanges, the Bank has
branches in the centres where the NSE/BSE have a strong and active member base.

The Bank also has 3,898 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be
accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American
Express Credit/Charge cardholders.