The National Stock Exchange (NSE) has proposed a stricter regulatory framework for Authorised Persons (APs) to strengthen investor protection, improve supervision and enhance accountability of stockbrokers, according to Akashvani/News on AIR. The proposals have been issued through a consultation paper prepared jointly by stock exchanges in consultation with the Securities and Exchange Board of India (SEBI).
According to the report, public comments have been invited till 27th of this month, meaning market participants can respond until 27 August 2026. The draft framework would, if implemented, introduce two-tier minimum net worth requirements for authorised persons.
Net worth thresholds for authorised persons
The consultation paper proposes that individual Authorised Persons maintain a minimum net worth of five lakh rupees, while partnership firms, LLPs and body corporates will need a minimum net worth of 25 lakh rupees, as reported by Akashvani/News on AIR.
| Category of Authorised Person | Proposed minimum net worth |
|---|---|
| Individual | ₹5,00,000 |
| Partnership firms, LLPs and body corporates | ₹25,00,000 |
The move is aimed at strengthening investor protection, improving supervision and enhancing accountability of stockbrokers, the report stated.
Disclosure and technology safeguards
The proposals also mandate disclosure of all banks and demat accounts, business-related websites and social media handles, according to the consultation paper. These disclosures would be required from authorised persons under the proposed framework.
Technology-based safeguards form another component of the draft norms. The measures listed in the consultation paper include:
- geo-tagging
- CCTV surveillance
- biometric authentication at trading terminals
As outlined by Akashvani/News on AIR, these safeguards would apply at trading terminals operated by authorised persons.
Stockbroker responsibility and oversight
A central feature of the proposed norms is the accountability placed on stockbrokers. According to the report, stockbrokers will be responsible for the acts of their Authorised Persons and will be required to conduct regular inspections, surprise audits and enhanced monitoring to safeguard investors.
The framework puts the supervisory burden on brokers, requiring them to maintain oversight of all authorised persons they engage, as stated in the consultation paper.
Compliance implications
For stockbrokers, the proposed norms would mean a defined responsibility for the actions of their authorised persons, along with a requirement to conduct regular inspections, surprise audits and enhanced monitoring, according to Akashvani/News on AIR. For authorised persons — both individual and corporate — the eligibility framework would require adherence to new net worth floors and operational transparency measures, including disclosure of bank and demat accounts, websites and social media handles.
The public consultation window remains open until 27 August 2026, the report said, after which the feedback will be reviewed by the exchanges and SEBI.
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