NSE restricts traders from using 61 words like mutual funds, advisor among others
2 min read 23 Feb 2023, 12:36 PM ISTThe reason behind this development is to prevent investors from getting misled to the fact that the traders are registered for offering services other than broking services without having the applicable registration
PremiumThe National Stock Exchange or NSE on Thursday restricted members and authorised persons from using names such as advisor, mutual funds, mutual fund services, capital manager, fund advisor, and asset/wealth/portfolio management among others.
The Mumbai-based stock exchange said it creates a wrong impression among investors.
“It is observed by Exchange that Trading Members/Authorized Persons are using words such as Advisors, Asset/Wealth/Portfolio Management etc. in their name which is misleading and may indicate to the clients/investors that the Trading Members/Authorized Persons are registered for offering services other than broking services without having the applicable registration for those services with SEBI/other regulators," NSE said in a statement.
"The name of Trading Member/Authorized Person should reflect the registration held by the entity and should not in any way create an impression of performing a role for which the entity is not registered," the circular read.
The reason behind this development is to prevent investors from getting misled to the fact that the traders are registered for offering services other than broking services without having the applicable registration.
After this order, the members can only use the listed nomenclatures only if they have registered themselves in that capacity with SEBI or with other regulators. However, it may be noted that the list provided is illustrative and not exhaustive, the circular clarified.
Here are the 61 words that the exchange has listed that are not permitted to be used by traders. Full list below:
1. Adviser/Advisor
2. Advisory Services
3. Asset
4. Asset Advisory
5. Asset consultancy
6. Asset distribution
7. Asset management
8. Asset manager
9. Asset services
10. Asset consultants
11. Capital Adviser/Advisor
12. Capital management
13. Capital services
14. Corporate advisory
15. Financial planner/s
16. Financial planning
17. Fund Adviser/Advisor
18. Fundmart
19. Independant Financial Adviser/IFA
20. Investmart
21. Investment Adviser/Advisor
22. Investment consultancy
23. Investment consultancy services
24. Investment consultant/s
25. Investment consulting
26. Investment manager/s
27. Investment planners
28. Investment solutions
29. Money manager
30. Multi Wealth investments
31. Mutual fund services
32. Mutual funds
33. Portfolio
34. Portfolio advisory
35. Portfolio consultancy
36. Portfolio consultants
37. Portfolio management
38. Portfolio manager
39. Portfolio services
40. prime wealth
41. wealth
42. wealth adviser/s or wealth advisor/s
43. wealth advisory
44. wealth advisory services
45. wealth care
46. wealth chanakya
47. wealth consultancy
48. wealth consultants
49. wealth consulting
50. wealth creator/s
51. wealth express
52. wealth investment
53. wealth mall
54. wealth management
55. wealth manager/s
56. wealth planner
57. wealth plus
58. wealth services
59. wealth solution/s
60. wealth vision
61. wealth yantra
Further, the NSE has advised traders to comply with this order in the exchange and also with the Registrar of Companies by 31 March, 2023 in case the listed nomenclatures are being used.
