Market Access through Authorised Persons

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....f stock exchanges to provide access to clients through authorised persons. The framework governing the market access through authorised persons is enclosed at Annexure-1.This framework provides the minimum requirements and the stock exchanges and stock brokers may prescribe additional requirements, as they may deem appropriate, in the interest of investors and market. 2. The stock exchanges are advised to make necessary amendments to the bye-laws, rules and regulations to implement the framework for market access through authorized persons. 3. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promo....

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....nce involving fraud or dishonesty; d) has good reputation and character; e) has passed at least 10th standard or equivalent examination from an institution recognized by the Government; and f) has the certification, as applicable to approved user / sales personnel of the respective segment, and undertakes to continue to have valid certification thereafter. (Stock Exchange shall prescribe appropriate certification if no such certification is prescribed under SEBI Regulations and monitor compliance.) 4.2 A partnership firm, LLP or a body corporate is eligible to be appointed as authorized person a) if all the partners or directors, as the case may be, comply with the requirements contained in clause 4.1 above. b) the object claus....

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....of information, commission sharing, termination clause, etc. 6. Withdrawal of Approval Approval given to an authorised person may be withdrawn by the stock exchange: a) on receipt of a request to that effect from the stock broker concerned or the authorised person, subject to compliance with the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 stock exchange, or b) 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 clause 4 above. 7. Obligations of Stock Broker a) The stock broker shall be responsible for all acts of omission and commission of his authorised person(s) and/or their employees, including lia....

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....e location where authorised person operates, file a complaint with the police, and take all measures required to protect the interest of investors and market. 8. Obligations of Exchange a) The stock exchange shall maintain a database of all the authorised persons which shall include the following: I. PAN Number of authorised person and in case of partnership or body corporate, PAN Number of all the partners or directors as the case may be. II. Details of the broker with whom the authorised person is registered. III. Locations of branch assigned to authorised person(s). IV. Number of terminals and their details, given to each authorised person. V. Withdrawal of approval of authorised person. VI. Change in status or constitutio....