ARG COMPLIANCE MANUAL - Rathi Online

k) An undertaking should be submitted that applicant will deal directly with investors and notthrough any other sub-broker on being registered with SEBI.Reasons for rejectiona)After four months of submitting the application the exchange returns the whole application backfor revalidation of Demand Draft as the exchange requires a DD with four months of validityremaining. We are at total mercy of exchange and after revalidation again it is processed afresh. Wehave to also upload details in ENIT before filing the application again.b)After submission the exchange rejects it on the grounds that the proposed subbroker is alreadyregistered with some other broker.c)Mismatch in name in mark sheet given by the franchisee andOne pager.d)Proposed subbroker is debarred / restricted / prohibited by SEBI to do any kind business insecurities. After submission of Undertaking the exchange takes another two months to complete theprocedure.3)Authorised Person – in NSE Cash / F & O – normally the exchangetakes 15 days in confirming a AP subject to clearance of Sub-brokerregistration applicationin NSE u can very well be a AP in Cash & F & O without applying for SubbrokerFeatures of AP concept - NSE Cash & F & O w.e.f 4/12/091. It is carrying a branch model concept and would be treated as a Brokers' branch2. All acts and ommissions committed by our AP is Broker's responsibilty3. Bilateral agreement needs to be executed between clients of AP and Broker4. Gestation period of getting registered is only 7 days5. Existing Registered subbrokers can also apply for AP6. One time processing fee is Rs1000/- + tax for allotment of AP number7. Existing Registered AP's in F & O segment would continue to hold thier status tillfurther notice/consensus8. Cancellartion /Termination of AP would require one month notice and newspaper adalongiwth separate checklist to be adhered to9. Disputes of clients of AP would be thru NSE redressal machinery of IGC /Arbitration10. Broker can block/withhold AP' payments in case of recoveries pending from hisclients11. Broker can share fees/commission/salary with AP as mutually decided uponbetween them93