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. 5000/- per segment (plus applicable Goods & Service Tax (GST)) Note: Processing fees will be charged after request is submitted on ENIT portal. 3. AP Annual Maintenance Charge - Rs. 5,000/- for all segments (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.
- A Director/Partner of a registered Authorised Person cannot be appointed as an Authorised Person in any capacity.
Procedures of Appointment
Trading Members desirous of appointing Authorised Persons are advised to note that approval of the Exchange is required for appointment of an Authorised Person.
The Trading Member shall apply online on ENIT (https://www.connect2nse.com/MemberPortal) through ENIT- Service Request>Exchange>Authorised Person>Authorised Person Master-Digisign. The scanned copies of documents (duly certified) as per the checklist should be uploaded on ENIT along with the application. There is no requirement for physical submission of documents at 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.
List of Documents :
The following is the list of documents required in case an applicant wants to be affiliated with a Trading Member in NSE:
- Undertaking from the applicant i.e. Authorised Person.
- Agreement between Trading member and applicant i.e. Authorised Person (All pages should be signed by Proprietor/Partner/ Director of Trading Member and Applicant/proprietor of AP firm/all the Partners/directors of the AP)
- PAN Card, Date of Birth Proof, Residential and Office Address Proof, Education Qualification Proof of the individual applicant/all partners/all directors. (In case of any name change notarized and duly attested Affidavit should be provided.)
- Annexure for Partner’s/Director’s Details and Shareholding Details duly certified by CA/CS.
- In case of LLP application, LLP Deed and Certificate of Incorporation (COI).
- In case of a body corporate, Memorandum of Association (MOA) and Certificate of Incorporation.
All documents uploaded should be certified as true copy by Proprietor/Partner/ Director of the trading member or CA/CS/Advocate while uploading on ENIT.
Withdrawal/Cancellation of Appointment
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, shall apply for cancellation online on ENIT (https://www.connect2nse.com/MemberPortal) through ENIT- Service Request >Exchange>Authorised Person> Cancellation of Authorised Person Digisign. The necessary scanned copies of the documents (duly certified) as per the checklist shall be uploaded on ENIT along with the application. There is no requirement for physical submission of documents at the Exchange
List of Documents :
The following is the list documents required in case an authorized person wishes to disaffiliate with a Trading Member in NSE:
- Request Letter for cancellation from the Authorised Person (on the letter head) to the Trading member.
- In case of cancellation due to death of the AP, duly certified death certificate of the AP should be uploaded on ENIT along with the covering letter from the Trading Member stating the AP details.
- In case of partnership/LLP firm/corporate the request letter of the AP for cancellation should be signed by all the partners/directors/authorized signatory (In case of authorized signatory, a board resolution/letter of authority should also be uploaded).
- In case the AP is not traceable, the trading member can apply for cancellation by submitting a copy of termination notice mentioning all the details of AP along with POD (Proof of Delivery mentioning the name of AP/TM and date)
All documents uploaded should be certified as true copy by Proprietor/Partner/ Director of the trading member or CA/CS/Advocate while uploading on ENIT.
The status of the application can be tracked online on ENIT. If the application is found to be in order, a registration code shall be provided to the applicant and the Trading member can download the approval letter from extranet under the folder FTP > memltrs > Dnld. In case, any deficiencies are observed in the application, the same shall be “Returned” on ENIT with the deficiencies mentioned in the Remarks column. The returned applications can be submitted again by selecting “Re-submit” on ENIT after complying with the requirements.
Format and Checklists
Appointment of Authorised Person:
Download Partnership Firm/LLP (.doc)
Download Undertaking format for transition from Sub broker to AP (.doc)
List of Transition cases from Sub Broker to Authorised Person (.xls)
Checklist for appointment of Authorised Person:
Download Partnership Firm/LLP (.doc)
Download Checklist for Cancellation of Authorised Person Application (.doc)
Download Agreement format between the Trading Member and Authorised Person (.doc)
In case of change in constitution of Authorised Person from Individual to Partnership Firm/LLP/Corporate or from Partnership Firm/LLP to Partnership Firm/LLP/Corporate, or any change in affiliation with trading members, the member shall submit simultaneous applications both for cancellation of existing appointment (specifying the reason for cancellation as change in constitution) of such authorised person and for fresh appointment.
Request needs to be submitted to the Exchange for any change in address (Residential / Office) or addition of branch office of Authorised Person. The request has to be submitted only electronically through the ENIT System. Documents required for the application should be self-certified, scanned and uploaded on ENIT by the Trading Member. There is no need to submit any physical documents. The following documents should be submitted to the Exchange via ENIT (Membership > Authorised Person > Change details):
(A) For any change in address (Residential / Office) or addition of branch office of Authorised Person:
- Request letter from Authorised Person on his letter head.
- Latest Address proof of the new address / new branch office address duly certified by trading member.
(B) For change in name / trade name of Authorised Person:
- Request letter from Authorised Person on his letter head.
- In case of an individual, duly certified copy of marriage certificate or name change affidavit.
- In case of Partnership firm, duly certified copy of registered partnership Deed.
- In case of a Corporate, duly certified copy of certificate of Incorporation.
- In case of change in trade name, duly certified address proof.
(C) For change in Contact details:
- Request letter from Authorised Person on his letter head for any change in contact number or email address.
Request needs to be submitted to the Exchange for any change in Directors/ Partners of an Authorised Person. The request has to be submitted only electronically through the ENIT System. Documents required for the application should be self-certified, scanned and uploaded on ENIT by the Trading Member. There is no need to submit any physical documents. The following documents should be submitted to the Exchange via ENIT (Membership > Authorised Person > Change details):
- Request Letter from Authorised Person on the letter head.
- Incoming Director's/Partner’s PAN Card, Address Proof, Education Qualification Proof (duly certified by Trading Member).
- In case of partnership/LLP, Annexure 3 duly certified by CA/CS/Advocate mentioning the new partnership ratio and revised partnership deed.
- In case of corporate, Annexure 4 duly certified by CA/CS/Advocate and Board Resolution and Form 32 duly certified by Trading Member.
Transition process
For transition of Sub Broker to Authorised Person (only for such Authorised Person who are affiliated with the same stock broker as Sub-Brokers), the sub-broker (SB) on the Capital Market segment can apply for appointment as Authorised Person (AP) after or along with the application for cancellation of sub-broker. The stock exchange shall de-recognise the entity as sub-broker and approve the appointment of the entity as Authorised Person so that the business continuity is not affected. The member shall apply online for cancellation of Sub broker and Appointment of AP by selecting “TRANSITION FROM SB to AP” on ENIT.
All the documents pertaining to appointment of Authorised person and sub broker cancellation documents along with the undertaking as per format should be uploaded. Issue of advertisement in newspaper regarding surrender of sub broker registration shall not be required. However, the affiliating stock broker shall furnish an undertaking at the time of surrender of sub broker & APPOINTMENT of authorized person. Members have to send communication to the clients of the sub broker individually about the surrender of sub-brokership and also the fact of approval as Authorised Person. Members may refer to circular download NSE/MEM/21668 dated September 10, 2012 for the process of transition.
Download FAQs on Appointment and Cancellation of Authorised persons (.pdf)
RELEVANT CIRCULARS
| Download Reference Number |
Date | Subject |
|---|---|---|
| NSE/COMP/63628 | 28-Aug-2024 | Framework for Supervision of Authorised Persons (APs) & Branches by Members |
| NSE/COMP/62672 | 28-Jun-2024 | Restriction on use of certain words by Trading Members/Authorized Person in their name |
| NSE/COMP/60859 | 26-Feb-2024 | Annual Maintenance Charges towards Authorised Persons |
| NSE/COMP/58438 | 18-Sept-2023 | Market Access through Authorised Persons |
| NSE/COMP/56947 | 02-Jun-2023 | Market Access through Authorised Persons |
| NSE/COMP/56041 | 17-Mar-2023 | Restriction on use of certain words by Trading Members/Authorized Person in their Person |
| NSE/COMP/55716 | 22-Feb-2023 | Restriction on use of certain words by Trading Member/Authorized Person in their name |
| NSE/COMP/50030 | 21-Oct-2021 | Market Access through Authorised Persons |
| NSE/COMP/49509 | 03-Sept-2021 | Reporting of clients mapped to Authorised Persons (AP) |
| NSE/COMP/48536 | 09-Jun-2021 | Market Access through Authorised Persons |
| NSE/MEM/29830 | 29-May-2015 | Digital Submission of changes to registered Authorised Person details (pdf) |
| NSE/MEMB/23055 | 26-Mar-2013 | Digital Submission of Authorised Person Application (pdf) |
| NSE/MEMB/22642 | 30-Jan-2013 | Digital Submission of Authorised Person Application (pdf) |
| NSE/MEMB/21668 | 10-Sep-2012 | Rationalization of process relating to surrender of registration by sub-brokers (zip) |
| NSE/MEMB/19028 | 30-Sep-2011 | Acceptance of applications for Authorised Person with Digital Signature through ENIT (pdf) |
| NSE/MEMB/15285 | 23-Jul-2010 | Market Access through Authorised Persons (zip) |
| NSE/MEMB/13601 | 03-Dec-2009 | Procedure to be followed for appointment and cancellation of Authorised Persons (zip) |
| NSE/MEMB/13429 | 09-Nov-2009 | Market Access through Authorised Persons (zip) |
In case of any query or clarification on Authorised Person, please contact us on Toll free 1800 266 0050 or write to us on memcompliance_support@nse.co.in.
Updated on: 30/08/2024
