Can a distributor put their own mobile number on a client’s folio?

Lesson 49 of 50 for advisers · Two-factor checks and client contacts · 3 min read · Reviewed 13 Nov 2026

Quick answer

No. Distributors must never fill in their own contact details. Registrars find and remove a distributor’s or adviser’s email or mobile seeded in folios that aren’t theirs. A shared contact is allowed only for family, with a declaration: spouse, dependent children, siblings or parents, or a guardian. The OTP that approves the client’s transactions goes to these contacts.

Online redemptions need two-factor authentication since mid-2022; purchases since 1 Apr 2023. Offline forms need a signature.

For folios outside demat, one factor is an OTP to the email or mobile registered with the fund house.

Fund houses compensate investors for unauthorised transactions by their distributors, whether or not the fraud is reported. An RIA’s unauthorised transactions are not the fund house’s liability.

Video KYC is allowed if live, with random questions, a face match and a time-stamped recording.

Key idea: Nominations can be made online with e-Sign or an OTP.

Sources

Try the short quiz on this page to check what stuck.

Common questions

Does a SIP need an OTP every month?

No, only when the SIP or mandate is registered.

Is in-person verification needed after Aadhaar e-KYC?

No, not when KYC was done through Aadhaar or DigiLocker.

Since when has the contact rule applied?

AMFI’s best-practice guidelines from 1 Apr 2022.

More lessons

ARN, EUIN and renewal: What happens to a mutual fund distributor’s trail if the ARN is not renewed on time?
MFD or RIA: who may advise: Can a mutual fund distributor call themselves a financial adviser?
Advice and distribution, kept apart: Can an investment adviser also earn commission from the same client?
What an RIA may charge: How much can a SEBI-registered investment adviser charge a client?
Certificates and continuing education: Which NISM certificates do mutual fund distributors and investment advisers need?
How trail is paid: How are mutual fund distributors paid commission in India?
Expense ratio slabs: What is the maximum expense ratio a mutual fund can charge in 2026?
What the client’s statement shows: Does a mutual fund investor see the commission paid to their distributor?
Direct by default on fund-house apps: Are direct plans now the default on mutual fund apps?
Trail per crore: the maths of a book: How much trail does a mutual fund distributor earn per crore of AUM?
Selling SIFs: What does a mutual fund distributor need to sell a Specialised Investment Fund?
PMS and AIF distribution: What rules apply to distributing PMS and AIFs in India?
What your ads may say: What must a mutual fund distributor’s advertisement include?
The finfluencer rules: What do SEBI’s finfluencer rules mean for mutual fund distributors?
Nominees, KYC and transmission: How many nominees can a mutual fund investor add, and what does a claim need?
XIRR vs CAGR for a client: What is the difference between XIRR and CAGR for a SIP?
Overlap and look-through: How do you measure the overlap between two mutual funds?
Rebalancing talk, within the rules: What advice can a mutual fund distributor give about rebalancing?
The fund tax clients ask about: How are mutual fund gains taxed in FY 2026-27?
Capital gains statements at CA time: How are gains on mutual fund units bought before 1 February 2018 worked out?
A client review: the data checklist: What records must an investment adviser or distributor keep for client reviews?
SWPs for retired clients: How is a systematic withdrawal plan taxed?
Goal SIPs in a child’s name: What are the rules for a mutual fund SIP in a minor’s name?
Records and the RIA audit: When must a SEBI-registered investment adviser complete its annual audit?
What happens to your ARN business: What happens to a mutual fund distributor’s trail after their death?
Becoming an RIA: What do you need to register as an investment adviser with SEBI?
Part-time investment advisers: What is a part-time investment adviser under SEBI’s rules?
Research analyst or adviser: What is the difference between a research analyst and an investment adviser?
Sub-distributors and EUINs on every sale: What happens if a mutual fund purchase has no EUIN?
Onboarding NRI clients from abroad: Can an NRI complete mutual fund KYC from abroad?
Exit loads: What is the maximum exit load a mutual fund can charge?
Stamp duty on purchases: How much stamp duty is charged on mutual fund purchases?
GST on your commission: Does a mutual fund distributor pay GST on commission?
Clawback: When can a fund house claw back a distributor’s commission?
Execution-only platforms: What is an execution-only platform for mutual funds?
Fund categories after 2026: What changed in SEBI’s mutual fund categories in 2026?
How an NFO works: How long can a mutual fund NFO stay open?
Accredited investors: Who qualifies as an accredited investor in India?
Complaints: T3_SCORES and T3_ODR: How long does a SEBI-registered firm have to answer a T3_SCORES complaint?
Overseas limits: How much can Indian mutual funds invest overseas?
Index funds: tracking error and difference: What is the difference between tracking error and tracking difference?
Debt fund risk: the PRC grid: What is the Potential Risk Class matrix for debt funds?
Gold and silver funds: How are gold ETFs and gold fund of funds taxed in India?
NRI clients: TDS and repatriation: How is tax deducted on mutual fund income paid to an NRI?
Arbitrage funds: Why are arbitrage funds taxed as equity funds?
KYD and empanelment: Can a distributor with an ARN sell any fund house’s schemes?
When commission stops: What happens to trail commission if a distributor’s ARN lapses?
MFCentral, MFU and the exchanges: What is MFCentral?
Client data and the DPDP Act: Does the DPDP Act apply to a small mutual fund distributor?

For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.