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Shift to e-DIS method to keep securities in your demat acccount safe

This will ensure that you don't have to give power of attorney to your broker and yet do not lose out on convenience

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Photo credit: Kamlesh Pednekar

Sanjay Kumar Singh New Delhi
Through its circular dated August 27, the Securities and Exchange Board of India (Sebi) has reiterated that brokers should not make it mandatory for clients to give power of attorney (PoA) at the time of opening broking or depository participant accounts.

While the regulator is concerned about past misuse of PoA by brokers, it also wants to highlight that it has put new systems in place that have made PoA redundant.

According to B Gopkumar, managing director and chief executive officer, Axis Securities: “The regulator wants to minimise their use. They should be used for the purpose of settlement only.”

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First Published: Aug 31 2020 | 2:40 PM IST

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