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’.
Who is an Authorised Person?
Any person who is appointed as such by a trading member and who provides access to trading platform of a stock exchange as an agent of the stock broker is an Authorised person
Who can be appointed as an Authorised Person?
The following persons meeting the requisite eligibility criteria as prescribed by SEBI / Stock Exchange shall be appointed as an Authorised Person
An individual who is a resident of India
A Partnership Firm registered under Indian Partnership Act, 1932
A Limited Liability Partnership (LLP) registered under the Indian Limited Liability Partnership Act, 2008
A Body Corporate registered under the Indian Companies Act, 1956
Can a registered Authorised Person share brokerage with the stock broker?
Yes, Authorised Person can receive remuneration ‐ fees, charges, commission, salary, etc. for his services only from the stock broker and shall not charge any amount from theclients
Is it necessary to submit ROF certificate for registration of Partnership firm as Authorised person?
Yes, Registration of Firm (ROF) Certificate also needs to be submitted along with the Partnership deed for registering the partnership firm as Authorised Person
Whether an in‐person verification of clients can be carried out by Authorised Persons?
No, as per SEBI stipulations, in-person verification of clients can only be carried out by employees of the stock broker, hence an Authorised Person who is not an employee of the stock broker cannot carry out in-person verification and same rule is even applicable to a sub‐broker