On Feb. 22, IND NSE issued circular regarding naming restrictions.
IND NSE issue circular on restriction of use of certain words by trading member or authorized person in their name; name should reflect registration held by entity and should not create impression of performing a role for which the entity is not registered.
Context
IND NSE observed trading members / authorized persons are using words such as advisors, asset/wealth/portfolio management in their name which is misleading.
Stated that it may indicate to the clients/investors that the trading members or authorized persons are registered for offering services other than broking services.
That is, without them having applicable registration for such services with regulators.
Restrictions
List of names/words which are not permitted is set out in annexure A to the circular.
Said that members are advised to ensure that their name as well as the name of their registered authorized person should not contain such words unless these entities have registered themselves in that capacity with IND SEBI or other applicable regulators.
IND NSE cautioned that the list provided is illustrative only, and it is not exhaustive.
Members are advised to comply; if they are non-compliant, they must get their name changed with Registrar of Companies or Registrar of Firms, and in IND NSE records.
Effectiveness
Said that members must ensure compliance by Mar. 31, 2023.
Mar. 2023 Deadline Extension
On Mar. 17, 2023, IND NSE said that upgrading of electronic filing portal for submitting various forms, including forms for name change, is still under process of stabilization.
Decided that the time to comply with instructions will be extended until Mar. 31, 2024.
Mar. 2024 Deadline Extension
On Mar. 28, 2024, IND NSE extended timeframe for changing names with Registrar of Companies or Registrar of Firms, updating in IND NSE records until Jun. 30, 2024.
Members are urged to ensure compliance within this extended timeframe.
