Top stock exchange BSE has decided to levy a processing fee from trading members for cancellation of 'Authorised Person (AP)' registration from June 1.
'Authorised Person (AP)' refers to an individual, partnership firm, LLP or body corporate appointed by a stock broker. The AP provides access to trading platform of a stock exchange as an agent of the stock broker.
"Trading Members are hereby informed that exchange shall be levying processing fee of Rs 1,000 (along with applicable taxes) with effect from June 1, 2017, towards cancellation of authorised person registration," BSE said in a circular today.
"The processing fee shall be applicable to incomplete AP cancellation applications returned by the stock exchange and re-submitted by members on or after June 1, 2017," it added.
As per norms, a stock broker may 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 is for specific segment of the exchange.
All APs are required to obtain a certificate of registration from the exchange without which they are not permitted to deal in securities.
Moreover, it is mandatory for member-brokers to enter into an agreement with the authorised person. The agreement lays down the rights and responsibilities of member-brokers as well as authorised person.
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