To act as an Authorised Partner, one must obtain a certificate of registration from the National Stock Exchange (NSE). The rules are clear that Authorised Partners without registration are not allowed to deal in securities.
Authorised Partners are crucial for expanding the business operations of brokerages, as broking firms enroll them on a franchise model basis to grow their business volumes. Registered Authorised Partners can also assist existing clients with their business decisions.
How is an Authorised Partner registered?
According to NSE rules, all brokerage houses must sign a contract with their Authorised Partners detailing the rights and responsibilities related to registration and functions.
Authorised Partner enrollment
Brokerage houses that onboard Authorised Partners need to ensure that they meet the registration criteria and pre-conditions for eligibility. While the educational qualification requirements are not high (anyone can join after completing Class 10), specific requirements must be met, or the application will be disqualified.
Authorised Partner registration forms are usually available on brokerage websites.
Authorised Partner registration process:
- Physical documents required by NSE must be submitted within seven days of applying; otherwise, the application will be rejected
- The applicant will receive a notification to deposit an application fee
- If something is missed out in the application, it will be sent back for review and re-submission
- After processing the application, the exchange notifies and collects the NSE registration fee by debiting the exchange dues account
- The person or entity registered as an Authorised Partner must receive recognition from the Stakeholders Relationship Committee (SRC)
The Authorised Partner Registration Certificate is issued by NSE, and the registration number and date are provided to the trading member.
Authorised Partners registered with NSE do not need to enroll with any other exchange; they simply need to request a membership transfer.
Documents needed for registration of Authorised Partners:
Authorised Partners should submit all supporting documents with the application to ensure a swift and complete process. Failure to include supporting documents may result in application rejection within the seven-day time limit set by NSE.
- Address proof: NSE accepts valid proof of address such as the latest electricity or telephone bill, valid ration card, passport, driving license, or latest bank statement
- Proof of experience: It is mandatory to provide certification of specialization if the applicant's qualification is less than HSC (Class 10)
Steps to complete registration:
- Stay updated with the code of conduct and bylaws of the stock exchange where the Authorised Partner is enrolled
- Pay the required application fee and annual fee promptly
- Adhere to Schedule II regulations, which outline the code of conduct
- Maintain the net worth as described under Schedule VI regulations
Conclusion:
Authorised Partners are recognized as key players in the equity market, providing essential investment services and support to clients. Authorised Partner registration is a crucial step to uphold NSE's commitment to maintaining integrity and transparency in the market.