NSE proposes stricter Authorised Persons rules

The National Stock Exchange of India (NSE) has released a consultation paper proposing a major overhaul of the regulatory framework for Authorised Persons (APs). The proposals, developed jointly with the India — Securities and Exchange Board of India (SEBI), aim to strengthen investor protection and supervision of APs. Key measures include stricter eligibility criteria (educational qualifications, work experience, NISM certifications), minimum net worth requirements (Rs 5 lakh for individuals, Rs 25 lakh for firms), a mandatory Rs 1 lakh deposit with the broker, enhanced compliance and disclosure obligations, technology-based safeguards for trading terminals (geo-tagging, CCTV, biometric authentication), and increased broker accountability for AP actions. Brokers would be responsible for all acts of omission and commission by their APs and employees, and must conduct inspections, audits, and social media screening. The consultation period runs until August 27, after which feedback will be considered before finalizing the rules.