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PoA optional for opening of client account by stockbrokers or DP: Sebi

Sebi also specified the activities the stockbrokers will not be allowed to carry out using PoA

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In addition, PoA can be used for the limited purposes as specified in the guidelines for execution of PoA issued in April 2010, Sebi said.

Press Trust of India New Delhi

3 min read Last Updated : Aug 27 2020 | 10:52 PM IST

In view of instances of misuse of power of attorney (PoA), Sebi on Thursday reiterated that PoA is optional for opening of client account by stockbrokers or depository participants.

In a circular, Sebi noted that PoA is invariably obtained from the investors as part of the Know Your Customer (KYC) and account opening process. It also noted that PoA executed by clients are found to have been misused by the stockbrokers by taking authorisation even for activities prohibited by the regulator in its guidelines for execution of PoA, issued in April 2010, it added.

Therefore, Sebi said that "PoA is

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