The National Stock Exchange of India Limited (NSE), on August 6, 2026, issued a consultation paper proposing a revised regulatory framework for Authorised Persons (APs) in consultation with SEBI to strengthen oversight, enhance investor protection, and improve compliance. The proposals revise the existing 2009 framework by introducing stricter eligibility criteria, including minimum educational qualifications, work experience, mandatory NISM certifications, minimum net worth and security deposit requirements, along with enhanced fit and proper standards for individuals and non-individual APs. Public comments have been invited until August 27, 2026.
The consultation paper prescribes comprehensive responsibilities for Authorised Persons, including restrictions on multiple registrations, mandatory compliance with PMLA guidelines, prohibition on handling client funds or securities, disclosure of bank, demat and social media details, maintenance of data security, and display of prescribed investor information at AP offices. For APs with trading terminals, additional safeguards such as geo-tagging, biometric or facial authentication, CCTV surveillance, maintenance of pre-order placement evidence and robust data protection measures have been proposed.
The paper also places enhanced supervisory obligations on stock brokers, including periodic inspections, surprise audits, off-site surveillance, mandatory training programmes, monitoring of AP activities, implementation of technology-based controls, client awareness measures, social media oversight, continuity arrangements upon AP deregistration, and strengthened withdrawal provisions for non-compliant APs. Stakeholders may submit comments on the proposals through the NSE website by August 27, 2026.
