Decoding the NSE Referral Circular: What Sets Navia Apart!

Recently, the National Stock Exchange (NSE) issued a new circular addressing concerns about referral schemes in the trading industry. This circular primarily targets the growing issue of unregistered “finfluencers” (financial influencers) who are referring clients to brokers and inducing trades without being registered as Authorized Persons (AP) with the NSE. These individuals are not regulated by the exchange, which poses significant risks to investors. 

Key Points from the NSE Circular: 

Mandatory Registration as Authorized Person (AP) 

The NSE has clarified that anyone referring clients to a trading member (broker) must be registered as an Authorized Person (AP). This registration requires prior approval from the stock exchange, ensuring that all referrals are conducted by individuals who fall under regulatory oversight. 

Regulatory Compliance for Brokers

Brokers are reminded to ensure that their Authorized Persons engage only in permitted activities. They are prohibited from running unauthorized schemes, such as collective investments or promising guaranteed returns, which could mislead investors. 

Increased Scrutiny and Safeguards

The circular reiterates that brokers must comply with all relevant SEBI regulations and NSE guidelines, particularly concerning brokerage sharing, account opening, and trade inducement practices. 

What Does This Mean for Navia and Our Clients? 

Many brokers have responded to this circular by suspending their referral schemes, particularly those that share brokerage commissions. This step is being taken to avoid potential regulatory issues stemming from unregistered referrers. 

However, at Navia, we want to assure you that our referral scheme remains unaffected. 

Why Navia’s Referral Scheme is Different: 

No Brokerage Sharing – Only NCoins

Unlike many brokers, Navia does not share brokerage commissions through its referral program. Instead, we reward our clients with fixed Ncoins which can be redeemed for various benefits. This structure ensures that our referral scheme is fully compliant with NSE guidelines while still offering you valuable rewards. 

Regulatory Compliance

Since we do not engage in the practice of brokerage sharing, our referral program is insulated from the regulatory risks highlighted in the NSE circular. This means you can continue to refer friends and family to Navia with confidence, knowing that our scheme is robust and fully compliant. 

We Value Your Trust 

At Navia, our top priority is protecting your interests and ensuring that all our practices are transparent and compliant with industry regulations. We are committed to providing you with the best trading experience, including a referral program that rewards you without compromising your safety. 

DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.