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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Restriction on use of certain words by Trading Members / Authorized Person in their name

05-Sep-2024 | NSE/COMP/63777

NSE has issued a circular in reference to Exchange circular no. NSE/COMP/55716 and circular no - NSE/COMP/61367, where a restriction was placed on Trading Members / Authorised Persons for using certain words in their names. Exchange vide circular no - NSE/COMP/62672 dated June 28, 2024, had advised Members to change their name or the name of their registered Authorized Persons if it contained restricted words indicating a role for which the entity is not registered. This change was required to be made with the Registrar of Companies (ROC)/Registrar of Firms (ROF) and also updated in Exchange records by September 30, 2024. Vide this circular, members are again advised to ensure the compliance of the aforesaid circulars for themselves and for the Authorized Person affiliated with them. Further, in case the Trading Members / Authorized Persons continue to use the restricted word, which creates an impression of performing a role for which the entity is not registered post September 30, 2024, disciplinary action as provided in the circular shall be taken till the Trading Members / Authorized Persons complies with the same.

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