The National Stock Exchange (NSE) has proposed a stricter regulatory framework for Authorised Persons (APs) to strengthen investor protection, improve supervision and enhance accountability of stockbrokers. The proposals have been issued through a consultation paper prepared jointly by stock exchanges in consultation with the Securities and Exchange Board of India (SEBI). Public comments have been invited till 27th of this month.
Under the proposed framework, individual Authorised Persons will be required to maintain a minimum net worth of five lakh rupees, while partnership firms, LLPs and body corporates will need a minimum net worth of 25 lakh rupees.
The proposals also mandate disclosure of all banks and demat accounts, business-related websites and social media handles, besides technology-based safeguards such as geo-tagging, CCTV surveillance and biometric authentication at trading terminals. Stockbrokers will be responsible for the acts of their Authorised Persons and will be required to conduct regular inspections, surprise audits and enhanced monitoring to safeguard investors.
NSE proposes stricter eligibility norms for authorised persons to strengthen investor protection
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