If you’ve spent any time researching how to become a sub broker, mutual fund distributor, DSA, or insurance agent in India, you’ve probably noticed something frustrating: almost every article assumes you already know what NISM, IRDAI, ARN, or EUIN actually mean.
These acronyms get thrown around constantly, but are rarely explained in one place.
This glossary fixes that — a single, clear reference for every major term you’ll run into while building a financial services franchise business in India, organised so you can quickly find exactly what you’re looking for.
Regulatory Bodies: Who’s Actually in Charge of What
Understanding who regulates which part of the financial services industry is the foundation for everything else in this glossary.
SEBI (Securities and Exchange Board of India): India’s capital markets regulator, responsible for overseeing stock exchanges, brokers, sub brokers/Authorised Persons, mutual funds, and investment advisors. If it involves stocks, mutual funds, or investment advice, SEBI is almost certainly involved somewhere in the regulatory chain.
IRDAI (Insurance Regulatory and Development Authority of India): The regulator overseeing India’s entire insurance industry — insurers, insurance agents, POSPs, brokers, and corporate agents all fall under IRDAI’s authority.
AMFI (Association of Mutual Funds in India): The industry body representing mutual fund companies (AMCs) in India, responsible for issuing ARNs to mutual fund distributors and maintaining distributor registration standards.
RBI (Reserve Bank of India): India’s central bank, which regulates banks and NBFCs — directly relevant to anyone working as a DSA, since RBI’s Digital Lending Directions govern how loan sourcing and DSA agreements are conducted.
NISM (National Institute of Securities Markets): A public trust established by SEBI to conduct standardised certification exams for professionals across the securities markets — including the exams sub brokers and mutual fund distributors must clear.
Certifications & Exams: What You Actually Need to Clear
Each financial franchise vertical has its own mandatory certification, and it’s easy to confuse them since they share similar naming conventions.
NISM Series XV (Research Analyst Certification): Required for most sub brokers/Authorised Persons, as covered in our NISM Series XV exam guide. Tests knowledge of research analysis, valuation, and regulatory compliance.
NISM Series V-A (Mutual Fund Distributors Certification): Required to become a mutual fund distributor, as covered in our MFD registration guide. Covers mutual fund basics, NAV, taxation, and investor servicing.
NISM Series X-A and X-B (Investment Adviser Certifications): Required for SEBI Registered Investment Advisors (RIAs), as covered in our MFD vs RIA comparison. Level 1 (X-A) and Level 2 (X-B) together qualify someone to register as an RIA.
IC-38: The examination required to become a full-time licensed insurance agent under IRDAI, as covered in our insurance agent licensing guide. Not required for the simpler POSP route.
Registration Numbers & Codes: Your Professional Identity in the System
Once certified, you’re typically assigned a unique code or number that identifies you within the regulatory system — here’s what each one means.
ARN (AMFI Registration Number): The unique registration number issued to mutual fund distributors after clearing NISM Series V-A, processed through CAMS on behalf of AMFI. Every mutual fund transaction you help a client complete is tagged with your ARN.
EUIN (Employee Unique Identification Number): A code identifying the specific individual who advised an investor, typically used when working under a larger distributor entity or corporate ARN holder — an added accountability layer to prevent mis-selling.
DSA Code: The unique identification number assigned to a Direct Selling Agent after successful registration with a bank or NBFC, as covered in our DSA registration guide. Every loan application you source is tracked under this code.
Key Financial & Business Terms You’ll Encounter Often
Beyond regulators and registration codes, several other terms come up constantly across sub broker, MFD, DSA, and insurance agent content — understanding them makes everything else easier to follow.
POSP (Point of Sales Person): A simplified, IRDAI-recognised insurance selling category authorised to sell only pre-approved, pre-underwritten products.
RIA (Registered Investment Adviser): A SEBI-registered, fee-only financial advisor who cannot earn product commission.
AP (Authorised Person): The current, official SEBI term for what’s commonly still called a “sub broker,”.
Trail Commission: The ongoing, annual commission a mutual fund distributor earns based on a client’s Assets Under Management (AUM).
AUM (Assets Under Management): The total market value of the investments a distributor or advisor manages on behalf of clients — a key metric for calculating trail commission.
NAV (Net Asset Value): The per-unit market value of a mutual fund scheme, used to calculate how many units an investor’s money buys.
TER (Total Expense Ratio) and BER (Base Expense Ratio): TER is the overall annual cost of running a mutual fund scheme, including distributor commission; BER, introduced under SEBI’s 2026 mutual fund regulations, separately discloses the fund management portion of that cost.
EOM (Expenses of Management): The regulatory framework IRDAI now uses to govern insurers’ overall expenses, including agent commission, replacing the earlier fixed commission slab system.
CIBIL Score: A three-digit credit score (300-900) reflecting an individual’s credit history, central to loan approval decisions.
KYC (Know Your Customer): The identity verification process required before opening any financial account — trading, mutual fund, loan, or insurance-related.
SSV (Special Surrender Value): A 2024 IRDAI norm requiring insurers to offer policyholders improved payouts on premature policy exits, which directly influenced recent changes to agent commission structures.
CPD (Continuing Professional Development): The refresher training requirement for renewing an insurance agent’s IRDAI license.
Complete Glossary at a Glance
| Term | Full Form | Quick Meaning |
| SEBI | Securities and Exchange Board of India | Regulates capital markets, brokers, mutual funds, investment advisors |
| IRDAI | Insurance Regulatory and Development Authority of India | Regulates the entire insurance industry |
| AMFI | Association of Mutual Funds in India | Industry body issuing ARNs to mutual fund distributors |
| RBI | Reserve Bank of India | Regulates banks and NBFCs; governs DSA lending rules |
| NISM | National Institute of Securities Markets | Conducts certification exams for market professionals |
| ARN | AMFI Registration Number | Unique ID for registered mutual fund distributors |
| EUIN | Employee Unique Identification Number | Identifies the individual advisor within a distributor entity |
| POSP | Point of Sales Person | Simplified insurance-selling category with limited product scope |
| RIA | Registered Investment Adviser | SEBI-registered, fee-only investment advisor |
| AP | Authorised Person | Official term for a ‘sub broker’ |
| AUM | Assets Under Management | Total value of investments managed on a client’s behalf |
| NAV | Net Asset Value | Per-unit market value of a mutual fund scheme |
| TER | Total Expense Ratio | Overall annual cost of running a mutual fund scheme |
| BER | Base Expense Ratio | Fund management portion of the TER (2026 disclosure norm) |
| EOM | Expenses of Management | IRDAI’s overall insurer expense framework, incl. commission |
| KYC | Know Your Customer | Identity verification process for financial accounts |
| SSV | Special Surrender Value | 2024 norm improving payouts on early policy exit |
| CPD | Continuing Professional Development | Refresher training for insurance license renewal |
| IC-38 | (Exam code, no expansion) | Exam required for full IRDAI insurance agent licensing |
| CIBIL | Credit Information Bureau (India) Limited | Credit bureau providing the 300-900 credit score used in loan approvals |
Frequently Asked Questions
What is the difference between SEBI and IRDAI?
SEBI regulates capital markets — stock broking, mutual funds, and investment advisory — while IRDAI regulates the insurance industry. If your business involves stocks or mutual funds, SEBI applies; if it involves insurance, IRDAI applies.
Is ARN the same as a DSA code?
No. ARN is specific to mutual fund distributors, issued by AMFI. A DSA code is a separate identifier issued by a bank or NBFC to loan sourcing agents — they serve similar tracking purposes but belong to entirely different regulatory systems.
Do I need to know all these terms to start a financial franchise business?
Not all at once — but understanding the terms relevant to your specific vertical (sub broker, MFD, DSA, or insurance agent) will make the registration process, agreements, and ongoing compliance significantly easier to navigate.
What does NISM stand for, and why does it appear across multiple financial verticals?
NISM stands for National Institute of Securities Markets. It conducts certification exams across several financial verticals — including NISM Series XV for sub brokers and NISM Series V-A for mutual fund distributors — because it’s SEBI’s designated body for standardising market-related professional certifications.