As per Circular No. MCX-SX/MEM/226/2009 dated November 10, 2009 , an Authorised Person is defined : ‘Any person, individual, partnership firm, LLP or body corporate, who is appointed as such by a Stock Broker (including Trading Member) and who provides access to trading platform of a Stock Exchange as an agent of the Stock Broker’. Download Ref no. MCX-SX/MEM/226/2009

• Should be a citizen of India
• Should not be less than 18 years of age
• Should not have been convicted of any offence involving fraud and dishonesty
• Should have good reputation and character
• Should have passed at least 10th standard or equivalent examination from an institution recognized by the Government

• All the partners and directors, as the case may be, must comply with the eligibility criteria for individuals given above
• The Object Clause of the Partnership Deed and the Memorandum of Association must contain a clause permitting the person to deal in securities business

The Authorised Person shall also have the necessary infrastructure like adequate office space, equipment and manpower to effectively discharge the activities on behalf of the Trading Member.

• The Trading Member shall be responsible for all acts of omission and commission of the Authorised Person.
• All acts of omissions and commission of the Authorised Person shall be deemed to be that of the Trading Member.
• The Authorised Person shall not receive or pay any money or securities in its own name or account. All receipts and payments of securities and funds shall be made in the name of or account of a Trading Member.
• The Authorised Person shall receive his remuneration- fees, charges, commission, salary etc. for his services only from the Trading Member and he shall not charge any amount from the clients.
• A person shall not be appointed as a Authorised Person by more than one Trading Member.
• A partner or director of an Authorised Person shall not be appointed as an Authorised Person with the Exchange
• The Trading Member and Authorised Person shall enter into written agreement(s) in the form(s) prescribed by the Exchange. The agreement shall inter-alia cover scope of the activities, responsibilities, confidentiality of information, commission sharing, termination clause etc.

Members desirous of appointing a Authorised Person shall submit an application along with supporting documents, complete in all respects to Membership Department as per the prescribed formats along with relevant processing fees.

Members can also submit the application through member interface MY EXCHANGE.

It may be noted that approval for appointment of Authorised Person is subject to receipt of complete set of documents by the Exchange. Members are required to ensure that the Authorised Person appointed by them comply with the requirement relating to their appointment on an ongoing basis.