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As per Circular No. 702, download Ref no. NSE/MEMB/13429 dated November 9, 2009,
an Authorised Person is
‘Any person, individual, partnership firm, LLP or body corporate, who is
appointed as such by a Stock Broker (including Trading Member) and who provides
access to trading platform of a Stock Exchange as an agent of the Stock Broker’.
Should be a citizen of India Should not be less than 18 years of age Should not have been convicted of any offence involving
fraud and dishonesty Should have good reputation and character Has passed at least 10th standard or equivalent
examination from an institution recognized by the government.
All the partners and directors, as the case may be, must
comply with the eligibility criteria for individuals given above The Object Clause of the Partnership Deed and the
Memorandum of Association must contain a clause permitting the person to deal in
securities business
The Authorised Person shall also have the necessary
infrastructure like adequate office space, equipment and manpower to effectively
discharge the activities on behalf of the Trading Member.
The Trading Member shall be responsible for all acts of
omission and commission of the Authorised Person. All acts of omissions and commission of the Authorised
Person shall be deemed to be that of the Trading Member. The Authorised Person shall not receive or pay any money or
securities in its own name or account. All receipts and payments of securities
and funds shall be made in the name of or account of a Trading Member. The Authorised Person shall receive his remuneration- fees,
charges, commission, salary etc. for his services only from the Trading Member
and he shall not charge any amount from the clients. A person shall not be appointed as a Authorised Person by
more than one Trading Member. A partner or director of an Authorised Person shall not be
appointed as an Authorised Person with the Exchange The Trading Member and Authorised Person shall enter into
written agreement(s) in the form(s) prescribed by the Exchange. The agreement
shall inter-alia cover scope of the activities, responsibilities,
confidentiality of information, commission sharing, termination clause etc.
Trading Members desirous of appointing Authorised Persons are advised to note
that approval of the Exchange is required for appointment of an Authorised
Person.
An applicant has to apply through ENIT. The path for the same is:
ENIT > Exchange > Authorised Person
For each segment i.e. Capital Market, Futures & Options and Currency Segment,
the following documents also need to be submitted:
Physical copy of request submitted through ENIT along
with prescribed formats for appointment. Copy of the agreement between the Trading Member and the
Authorised Person. Copy of NCFM/BCDE or NISM certificate as applicable.
It may be noted that approval for appointment of Authorised Person is subject to
receipt of complete set of documents by the Exchange. Trading Members are
required to ensure that the Authorised Person appointed by them comply with the
requirement relating to their appointment on an ongoing basis.
For further details, please refer to Circular No.705, Download Reference No. NSE/MEMB/13601
dated December 3, 2009.
Trading Members who want to change the constitution/status of any of their
Authorised Persons from Individual to Partnership Firm/LLP/Corporate or from
Partnership Firm/LLP to Partnership Firm/LLP/Corporate need to submit an
application (Click here for the prescribed
format).
Appointment of an Authorised Person may be withdrawn by the Exchange:
On receipt of a request to that effect from the Stock
Broker concerned or the Authorised Person, subject to compliance with the
requirements prescribed by the Exchange, or - On being satisfied that the continuation of Authorised Person is detrimental
to the interest of investors or securities market or the Authorised Person at a
subsequent date becomes ineligible under any of the clauses under the
eligibility criteria.
Trading Members, who want to withdraw/cancel the appointment of any of their
Authorised Persons, need to give an application for the same (Click
here for the prescribed format).
| Download Reference Number |
Date |
Subject |
| NSE/MEMB/13601 |
3-Dec-2009 |
Procedure to be followed for appointment and cancellation of Authorised Persons |
| NSE/MEMB/13429 |
9-Nov-2009 |
Market Access through Authorised Persons |
In case of any query or clarification on Authorised Person, please contact us on
+91 22 26598249 or write to us on minward@nse.co.in.
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