— NSE, BSE and MCX-SX.
“While Sebi has claimed more APs have entered the market, it’s to be seen how many have really entered the equity segment, especially the cash market. Why should more APs come to the cash market when retail investors are staying away?” he said.
Sebi rules say that a stock broker can appoint one or more APs after obtaining specific prior approval from the stock exchange concerned for each such person. The approval as well as the appointment will be for specific segment of the exchange. “Sub-brokers need Sebi registration. This means they can be inspected by the regulator directly. Sebi registration process may take up to two months. It’s faster in the case of AP registration with the exchanges,” Dharnidharka said.
Sebi also clearly states that the stockbroker will be responsible for all acts of omission and commission of the AP. He should have the necessary infrastructure such as adequate office space, the necessary equipment and manpower to effectively discharge the activities on behalf of the stock broker. If any trading terminal is provided by the stockbroker to an authorised person, the place where such a trading terminal is located would be treated as the branch office of the stockbroker.
The Authorised Person will receive his remuneration — fees, charges, commission, salary for his services — only from the stockbroker and he can’t not charge any amount from the clients. Retail and cash markets may be down, but APs are not complaining. They have currency and index/futures markets to bank on.