Who is an Authorised Person?
Any person who is appointed as such by a trading member and who provides access to the trading platform of a stock exchange as an agent of the stockbroker is an authorized person.
Can AP accept Deposits?
The AP should not be involved in accepting deposits from the public and giving assured returns to their clients.
Can an AP (Authorised Person) publish any advertisement?
No, advertisements for soliciting business should not be issued by Authorised Persons in newspapers, pamphlets, journals, magazines, digital platforms, etc., without obtaining prior approval from the Exchange through the Trading Member.
Is cash dealing allowed for Authorised Persons (APs)?
No, cash dealing is not permitted in the securities market. Therefore, it is also strictly not allowed for any AP.
In the case of an individual applying to become an Authorised Person and operating from the office of the stockbroker, can the applicant mention the stockbroker’s office address as their own office address in the application form?
Yes, if the Authorised Person will be operating from the stockbroker’s office, the stockbroker’s office address can be mentioned in the application form. Additionally, a necessary undertaking, or NOC, from the stockbroker along with the stockbroker’s address proof must be submitted.
Can an AP publish any advertisement?
Authorised Persons (APs) are not allowed to publish advertisements for soliciting business—whether in newspapers, pamphlets, journals, magazines, digital platforms, etc.—without obtaining prior approval from the Exchange through the Trading Member.
Is the inspecting officer required to sign the Visitor Register during a visit to the AP’s office for inspection?
Yes, the inspecting officer is required to sign the Visitor Register at the time of the inspection.
Is an Authorised Person (AP) registered with the Securities and Exchange Board of India (SEBI)?
No, an AP is not registered with the Securities and Exchange Board of India (SEBI). As per SEBI Circular MIRSD/DR-1/Cir-16/09 dated November 6, 2009, SEBI has allowed SEBI-registered stockbrokers of stock exchanges to provide access to clients through Authorised Persons (APs). According to this circular, APs are registered only with the stock exchanges, not directly with SEBI.
What registers are required to be maintained at the AP’s office?
All Authorized Persons (APs) are required to compulsorily maintain the following two registers at their office: Visitor Register and Investor Grievance/Complaint Register.
Where would the AP registration documents be sent by the Jainam Head Office?
All AP applications will be prepared by the AP Cell, and the hard copies of the documents will be sent to the office address of the AP. No soft copies of the documents will be provided.
If an AP is not registered with SEBI, how should they display the SEBI registration certificate?
If an AP (Authorised Person) is not registered directly with SEBI, they are required to display the SEBI registration certificate of the stockbroker with whom they are affiliated. Accordingly, all our APs must display the SEBI registration certificate of Jainam Broking Limited at their registered address. |