AUTHORISED PERSONS
Trading members of the Exchange may appoint authorised persons who are individuals, registered partnership firms, bodies corporate or companies as defined under the Companies Act, 1956 in the Capital Market (CM) segment or Futures & Options (F&O) segment or in both CM and F&O segments.
An authorised person may introduce clients to the trading member for whom they may receive remuneration / commission / compensation from the trading member and not from the clients.
The clients introduced by the authorised person will have a direct relationship with the trading member i.e. the member-constituent agreement, know your client forms, risk disclosure document, etc. shall be executed between the client and the trading member i.e., the authorised person shall not be allowed to have any trading relationship with the clients.
The trading member shall issue the contract notes and/or bills directly to the client i.e. the authorized person shall not issue contract notes, confirmation memo and/or bills in their name.
The clients introduced by the authorised person would be required to deliver securities and make payments directly in the trade name of the trading member (as appearing on the SEBI registration certificate). Similarly the trading member shall deliver securities and make payments directly in the name of the clients.
For further details pertaining to authorised person and trading members desirous of appointing authorised person may refer to circular no. 333 (NSE/MEM/4082) dated April 10, 2003.
Trading members of the Exchange may appoint authorised persons who are individuals, registered partnership firms, bodies corporate or companies as defined under the Companies Act, 1956 in the Capital Market (CM) segment or Futures & Options (F&O) segment or in both CM and F&O segments.
An authorised person may introduce clients to the trading member for whom they may receive remuneration / commission / compensation from the trading member and not from the clients.
The clients introduced by the authorised person will have a direct relationship with the trading member i.e. the member-constituent agreement, know your client forms, risk disclosure document, etc. shall be executed between the client and the trading member i.e., the authorised person shall not be allowed to have any trading relationship with the clients.
The trading member shall issue the contract notes and/or bills directly to the client i.e. the authorized person shall not issue contract notes, confirmation memo and/or bills in their name.
The clients introduced by the authorised person would be required to deliver securities and make payments directly in the trade name of the trading member (as appearing on the SEBI registration certificate). Similarly the trading member shall deliver securities and make payments directly in the name of the clients.
For further details pertaining to authorised person and trading members desirous of appointing authorised person may refer to circular no. 333 (NSE/MEM/4082) dated April 10, 2003.