Investment Management Department

SEBI/IMD/CIR No.2/254/04

February 4, 2004

All Mutual Funds registered with SEBI Association of Mutual Funds in India (AMFI)

Dear Sirs,

Sub : Certification of agents/distributors and employees.

Please refer to SEBI Circular No. MFD/CIR No. 10/310/01 dated September 25, 2001, which had inter-alia mentioned that, the existing and new employees of mutual funds particularly those involved in sales and marketing, shall be encouraged to pass the certification process by December 2002. Accordingly, it is noted that AMFI is offering a certification module for the employees of mutual funds / Asset Management Companies (AMCs). It has now been decided that all existing personnel of mutual funds / AMCs who are engaged in sales and marketing, and employees who interact with investors such as those working in investor relations, call centres etc. shall mandatorily complete the certification process by September 30, 2004. However, the existing employees who would be above the age of 50 as on that date, would be exempted from this requirement of passing the certification test but they shall attend a refresher course on mutual funds which would be offered by AMFI and submit a certificate to that effect to their employers by September 30, 2004. After September 30, 2004, mutual funds/AMCs shall engage / employ certified personnel only, for the above mentioned activities.

Please also refer to SEBI Circular No. MFD/CIR/20/23230/2002 dated November 28, 2002 and specifically to the paragraph under the heading “Exemption for Senior Citizens”. It has now been decided to modify the criteria for exemption of the persons who were engaged in distribution of units of mutual funds as on 30/9/2003 as under :

all agents/distributors who were above the age of 50 and had experience of atleast 5 years as on 30/9/03, would not be required to pass the certification test.

Moreover, as a one-time measure, the persons who have already been exempted from the certification test as per the earlier criteria (i.e., above 60 years of age and having experience of atleast 2 years) shall continue to be exempted from the certification requirement.

However, all exempted persons (as per 1 and 2 above) shall attend a refresher course on mutual funds which would be offered by AMFI, by September 30, 2004 and a certificate to that effect endorsed by a mutual fund should be submitted to AMFI. Out of the persons engaged by the AMCs for selling and distribution of units as on September 30, 2003, the AMCs shall inform all such persons who would qualify for exemption under the aforesaid criteria.

These clarifications and guidelines are issued in accordance with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996.

Yours faithfully,


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