Authorised Persons

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’.

Eligibility Criteria & Conditions of Appointment

Particulars Description
Type Of Constitution Individual, Partnership Firm, LLP or Body Corporate
Eligibility Criteria for Individuals 1. Should be a citizen of India.

2. Should not be less than 18 years of age.

3. Should not have been convicted of any offence involving fraud and dishonesty.

4. Should have good reputation and character.

5. Should have passed at least 10th standard or equivalent examination from an institution recognized by the Government.

6. 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.
Eligibility Criteria for a Partnership Firm, LLP or Body Corporate 1. All the partners and directors, as the case may be, must comply with the eligibility criteria for individuals given above.

2. The Object Clause of the Partnership Deed and the Memorandum of Association must contain a clause permitting the person to deal in securities business.

3. 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.
Processing Fees 1. For AP Registration – Rs. 2000/- per segment (plus applicable Goods & Service Tax (GST))

2. For AP Cancelation – Rs. 1000/- per segment (plus applicable Goods & Service Tax (GST))


Conditions of Appointment
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.
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.

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