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National Stock Exchange proposes stricter rules for authorised persons and broker accountability
The National Stock Exchange (NSE) has released a consultation paper proposing a comprehensive overhaul of the regulatory framework for Authorised Persons (APs). The changes are intended to strengthen investor protection, improve supervision and make stock brokers more accountable for the actions of their authorised representatives.
Under the draft rules, individuals seeking AP status must meet higher eligibility standards, including specific educational qualifications, work experience, mandatory NISM certification and a minimum net worth of Rs 5 lakh. Partnership firms, LLPs and corporate bodies would need a minimum net worth of Rs 25 lakh. Every AP must also maintain a minimum deposit of Rs 1 lakh with its broker.
The proposal adds compliance obligations such as disclosing all bank and demat accounts, website and social‑media details, and requires brokers to conduct social‑media screening of APs and retain proof. For APs using trading terminals, the NSE suggests technology‑based safeguards including geo‑tagging, CCTV surveillance and biometric or facial‑recognition authentication. The paper invites public comments until 27 August 2026 and was prepared jointly by the exchanges and the Securities and Exchange Board of India (SEBI).
Entities
National Stock Exchange · Securities and Exchange Board of India
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Public comments on the consultation paper are invited until 27 August 2026. www.news18.com
- [● 3 SOURCES] Each Authorised Person must maintain a minimum deposit of Rs 1 lakh with its stock broker. www.news18.com
- [● 3 SOURCES] The National Stock Exchange has proposed a major overhaul of the regulatory framework for Authorised Persons. www.news18.com
- [● 3 SOURCES] The proposals aim to strengthen investor protection, improve supervision and increase broker accountability. www.news18.com
- [● 3 SOURCES] Brokers will be required to conduct social‑media screening of Authorised Persons and retain proof. www.news18.com
- [● 3 SOURCES] Individuals seeking to become Authorised Persons must have a minimum net worth of Rs 5 lakh. www.news18.com
- [● 3 SOURCES] Partnership firms, LLPs and corporate bodies must have a minimum net worth of Rs 25 lakh to act as Authorised Persons. www.news18.com
- [● 3 SOURCES] The proposal includes technology‑based safeguards such as geo‑tagging, CCTV surveillance and biometric authentication for trading terminals. www.news18.com