In a move to expand the reach of market for exchange traded products, the Securities and Exchange Board of India has come up with guidelines for market access through authorised persons.
The regulator has decided to allow registered brokers (including trading members) of stock exchanges to provide security market access to their clients through authorised persons. The regulation follows the recommendations made by the Secondary Market Advisory Committee of Sebi and discussions with the stock exchanges.
Sebi has defined authorised persons as an individual, partnership firm or corporate body appointed by the stock broker and who provides access to the trading platform of a stock exchange. Such appointments can be made only after obtaining specific prior approvals from the concerned stock exchanges for every person.
An authorised person, apart from being an 18-year-old Indian citizen should not be convicted of any offence involving fraud and should have passed at least 10th standard or equivalent examination.
Moreover, the person appointed by the stock broker should have the certification, as applicable to approved user of the respective segment and undertakes to continue to have valid certification thereafter, said Sebi in a note.