Is there any issue if transaction between AP and AP’s employee regarding the loan?
No, this is not an issue as long as the AP maintains proper records showing that the employee has been paid a salary. Maintaining these records is considered sufficient compliance.
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Is it allowed for an AP to be an employee of another trading member?
No, as per Byelaw 33 of NSE regarding Sharing of Brokerage, a broker cannot share brokerage with any other trading member or employee of another trading member. Therefore, an AP cannot be employed by a different broker.
Is it a compliance issue if an AP and their employee transfer funds to each other, and both have demat accounts with IIFL?
Yes, this is a compliance concern. Such fund transfers must have a valid justification. If the transfer is due to a genuine, documented loan taken by the employee, it is acceptable. However, any other reason is not permitted and may violate ...
Can an AP place mutual fund orders? How does client confirmation work?
As an AP, you are not allowed to place mutual fund orders on behalf of the client. The client must place the order themselves directly through an approved platform such as BSE Star MF, NSE NMF, or the distributor’s client-facing portal. This ensures ...
If a director change is in process, should we wait to update the AP’s address?
If the address has been updated in the ROC (Registrar of Companies), it must be immediately updated with IIFL. This is necessary to initiate the process for changing the registered address of the Authorized Person (AP) and terminal address. Other ...
Do demat rules apply only to the AP or also to staff with trading terminals?
Demat and trading compliance rules apply to any individual operating a terminal, including staff. If a staff member has terminal access, they must operate only under the AP’s registration and strictly on behalf of the AP during market hours. Personal ...