{"id":5528,"date":"2024-09-21T10:21:05","date_gmt":"2024-09-21T10:21:05","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=5528"},"modified":"2026-08-13T10:30:28","modified_gmt":"2026-08-13T10:30:28","slug":"nse-referral-circular","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/nse-referral-circular\/","title":{"rendered":"Decoding the NSE Referral Circular: What Sets Navia Apart!"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#key-points-from-the-nse-circular\">Key Points from the NSE Circular:<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#mandatory-registration-as-authorized-person-ap\">Mandatory Registration as Authorized Person (AP)<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#regulatory-compliance-for-brokers\">Regulatory Compliance for Brokers<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#increased-scrutiny-and-safeguards\">Increased Scrutiny and Safeguards<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#what-does-this-mean-for-navia-and-our-clients\">What Does This Mean for Navia and Our Clients?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#why-navias-referral-scheme-is-different\">Why Navia&#039;s Referral Scheme is Different:<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#no-brokerage-sharing-only-n-coins\">No Brokerage Sharing &#8211; Only NCoins<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#regulatory-compliance\">Regulatory Compliance<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#we-value-your-trust\">We Value Your Trust<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#frequently-asked-questions\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Recently, the <a href=\"https:\/\/www.nseindia.com\/\">National Stock Exchange (NSE)<\/a> issued a new circular addressing concerns about referral schemes in the trading industry. This circular primarily targets the growing issue of unregistered &#8220;finfluencers&#8221; (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.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\">This article describes NSE circular NSE\/INSP\/63425 (Circular Ref. No. 52\/2024) dated 14 August 2024 on incentives and referral schemes. The requirements it sets out may have been amended or superseded since. Please check the current circulars on <a href=\"https:\/\/www.nseindia.com\/\" target=\"_blank\" rel=\"noopener\">nseindia.com<\/a> before acting on this information.<\/p>\n\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8\"><strong>\ud83d\udca1 Quick Answer<\/strong><br>NSE&#8217;s circular of 14 August 2024 clarified that anyone referring clients to a trading member must first be appointed as an Authorised Person, with specific prior approval from the exchange for each such person. Brokers must also keep Authorised Persons to permitted activities and follow SEBI rules on brokerage sharing and trade inducement.<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-fbb38657ac1bb36606b576cf110efd4e\" id=\"key-points-from-the-nse-circular\" style=\"color:#023368\" style=\"color:#023368\"><strong>Key Points from the NSE Circular:<\/strong>&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-5018b79042cbdb651e5fa2543306f881\" id=\"mandatory-registration-as-authorized-person-ap\" style=\"color:#ec4d37\" style=\"color:#ec4d37\"><strong>Mandatory Registration as Authorized Person (AP)<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">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.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-b1c61ff391062614bb8b78f200f2e437\" id=\"regulatory-compliance-for-brokers\" style=\"color:#ec4d37\" style=\"color:#ec4d37\"><strong>Regulatory Compliance for Brokers<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">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.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-3940bee7946a5f96501a2a0a522c12f5\" id=\"increased-scrutiny-and-safeguards\" style=\"color:#ec4d37\" style=\"color:#ec4d37\"><strong>Increased Scrutiny and Safeguards<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The circular reiterates that brokers must comply with all relevant <a href=\"https:\/\/www.sebi.gov.in\/\" target=\"_blank\" rel=\"noopener\">SEBI regulations<\/a> and NSE guidelines, particularly concerning brokerage sharing, account opening, and trade inducement practices.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-6e3a08a6e48052d8892707f66ad1c50e\" id=\"what-does-this-mean-for-navia-and-our-clients\" style=\"color:#023368\" style=\"color:#023368\"><strong>What Does This Mean for Navia and Our Clients?<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">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.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>However, at <a href=\"https:\/\/navia.co.in\/\">Navia<\/a>, we want to assure you that our referral scheme remains unaffected.<\/strong>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-b53aef461afe972281573a1b584e6ae2\" id=\"why-navias-referral-scheme-is-different\" style=\"color:#023368\" style=\"color:#023368\"><strong>Why Navia&#8217;s Referral Scheme is Different:<\/strong>&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-7b6de90f28859ca89cca8ff9af68e7a2\" id=\"no-brokerage-sharing-only-n-coins\" style=\"color:#ec4d37\" style=\"color:#ec4d37\"><strong>No Brokerage Sharing \u2013 Only NCoins<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Unlike many brokers, Navia does not share brokerage commissions through its referral program. Instead, we reward our clients with fixed <a href=\"https:\/\/navia.co.in\/n-coins\" target=\"_blank\" rel=\"noreferrer noopener\">Ncoins<\/a> 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.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-2dc381cee1579f7240524f4772f334db\" id=\"regulatory-compliance\" style=\"color:#ec4d37\" style=\"color:#ec4d37\"><strong>Regulatory Compliance<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">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.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/open.navia.co.in\/?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=nse_referral_circular_CTA\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"149\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-1024x149.png\" alt=\"NSE Circular - open demat account with Navia\" class=\"wp-image-4299\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-1024x149.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-768x112.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2.png 1028w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-ba2e7535e2b5c7855f6358fb16669b79\" id=\"we-value-your-trust\" style=\"color:#023368\" style=\"color:#023368\"><strong>We Value Your Trust<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">At <a href=\"https:\/\/navia.co.in\/\">Navia<\/a>, 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.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\"><strong>To learn more about the circular<\/strong> <\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/nsearchives.nseindia.com\/content\/circulars\/INSP63425.pdf\" style=\"border-radius:27px;background-color:#ec4d37\"><strong>Click Here<\/strong>!<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<h3 style=\"color:#ec4d37\">Key Takeaways<\/h3>\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\">The circular clarifies that anyone referring a client to a trading member must be appointed as an Authorised Person (AP) of that trading member.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Each such appointment requires specific prior approval from the stock exchange.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Trading members must ensure their Authorised Persons engage only in permitted activities, and not run unauthorised collective investment schemes or promise guaranteed returns.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Members must comply with SEBI and exchange rules on brokerage sharing, account opening and inducement of trades.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Many brokers responded by suspending referral schemes that share brokerage commissions.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>DID YOU FIND THIS INTERESTING?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\"><strong>We&#8217;d love to hear from you &#8211;<\/strong> <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc?typeform-source=navia.co.in\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png\" alt=\"yes or no feedback form\" class=\"wp-image-8335\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-104d8c0b4552a7bc0756abdd38ec22b9\" id=\"frequently-asked-questions\" style=\"color:#023368\">Frequently Asked Questions<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What does the NSE circular on referral schemes say?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">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.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Who needs to be registered as an Authorized Person?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Anyone referring clients to a trading member must be registered as an Authorized Person. The circular addresses the growing issue of unregistered finfluencers who refer clients to brokers and induce trades without being registered as Authorized Persons with the NSE.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Is prior exchange approval needed to appoint an Authorized Person?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Yes. The registration requires prior approval from the stock exchange, which ensures that all referrals are conducted by individuals who fall under regulatory oversight.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What activities are Authorized Persons prohibited from?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">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.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What must brokers comply with under the circular?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">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.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Why did some brokers suspend their referral schemes?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Many brokers responded to this circular by suspending their referral schemes, particularly those that share brokerage commissions. This step was taken to avoid potential regulatory issues stemming from unregistered referrers.<\/p>\n\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\"><strong>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<\/strong>. Full disclaimer: <a href=\"https:\/\/bit.ly\/naviadisclaimer\" target=\"_blank\" rel=\"noopener\">https:\/\/bit.ly\/naviadisclaimer<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8220;finfluencers&#8221; (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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[5],"tags":[9,276,296,8,294],"class_list":["post-5528","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights","tag-finfluencers","tag-nse","tag-referral-scheme","tag-sebi","tag-stock-exchange"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/09\/Understanding-the-Recent-NSE-Circular-on-Referral-Schemes-and-How-Navia-Stands-Out.png","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/09\/Understanding-the-Recent-NSE-Circular-on-Referral-Schemes-and-How-Navia-Stands-Out.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/5528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=5528"}],"version-history":[{"count":9,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/5528\/revisions"}],"predecessor-version":[{"id":19263,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/5528\/revisions\/19263"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/5531"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=5528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=5528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=5528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}