In a circular issued to all their trading members, the stock exchanges have asked them to provide the name, address and other details of such designated directors to the Financial Intelligence Unit-India (FIU-IND) by August 1.
Similar steps are being taken for mutual funds and other market participants under capital markets regulator Sebi's guidance.
This new requirement was proposed by Sebi earlier this year and is part of efforts to ensure greater compliance with the Anti-Money Laundering and Countering Financing of Terrorism regulations.
Subsequently, a fresh circular has been issued by the stock exchanges to remind them about submitting details of such directors to FIU-IND.
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In a circular issued last night, the National Stock Exchange directed its "members to provide details of the designated director, such as name, designation and address to the office of the Director to FIU-IND."
As per the norms, a company can designate its managing director or a whole-time director as the designated director to ensure compliance with the regulations.
The FIU-IND can take appropriate action, including levying a monetary penalty, on the designated director for failure of the intermediary to comply with any of the obligations.