An individual is eligible to be appointed as "Authorized Person" if he:
- is a citizen of India;
- is not less than 18 years of age;
- has not been convicted of any offence involving fraud or dishonesty;
- if he has been suspended or barred by any Stock or Commodity Exchange for a period or more than six continuous calendar months, a period of suspension before he is considered for a reappointment as an Authorized Person.
- has a good reputation and character;
- has passed at least 10th standard or equivalent examination from an institution recognized by the Central Government / State Government; and
- possesses such certification that may be prescribed by the Commodity Derivative Exchange, as approved by the Commission from time to time.
partnership firm, LLP or a body corporate
A partnership firm, LLP or a body corporate is eligible to be appointed as Authorized Person:
- if all the partners or directors, as the case may be, comply with the requirements contained in clause 4.1 above
- the object clause of the partnership deed or of the Memorandum of Association contains a clause permitting the person to deal in commodities derivatives contracts.
A co-operative society shall be eligible to be appointed as an "Authorized Person"
- if all the Members / Directors by whatever name called, of the Managing Committee / Governing Body comply with the requirements contained in clause 4.1 above. However, in respect of clause at 4.1 (f) above, the Exchanges may at their discretion relax the criteria of educational qualifications.
- if the object clause of the Memorandum of Association of the co-operative society contains a clause permitting the co-operative society to deal in commodity derivatives contracts.
- The Authorized Person must have necessary infrastructure, viz., adequate office space, equipment, manpower and such other infrastructural facilities, which the Exchange may prescribe from time to time, to effectively discharge the activities on behalf of the Member.