The National Stock Exchange (NSE) on September 05, 2024, issued a circular regarding restrictions on the use of certain words by Trading Members/Authorized Persons in their name.
The following has been stated: -
•The Exchange vide circular no- NSE/COMP/62672 dated June 28, 2024, had advised Members to change their name or the name of their registered Authorized Persons if it contained restricted words indicating a role for which the entity is not registered.
•This change was required to be made with the Registrar of Companies (ROC)/Registrar of Firms (ROF) and also updated in Exchange records by September 30, 2024.
•In case the Trading Members/Authorized Persons continue to use the restricted word, which creates an impression of performing a role for which the entity is not registered post-September 30, 2024, following disciplinary action shall be taken till the Trading Members/Authorized Persons complies:
1. In the case of Trading Members – No new client onboarding.
2. In case of Authorized Persons – No new client onboarding for the Trading Member with whom the Authorized Person is affiliated.
[Circular Ref. No: 61/2024]
