Power of Attorney restrictions limit brokers' authority to settlement-related transfers and prohibit off market movements, while remaining revocable by clients. SEBI clarifies that a client's Power of Attorney to a stock broker or broker-cum-depository participant is optional and must not be a precondition for services. Permitted PoA powers are limited to transfers from the client's beneficial owner account to meet margin, delivery or settlement obligations arising from trades through the same broker, and to apply for or redeem investment products on client instruction with an audit trail. PoAs must list related-party bank and demat accounts, be revocable at any time without affecting prior settlement obligations, and must not enable off-market transfers between non-related parties.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Power of Attorney restrictions limit brokers' authority to settlement-related transfers and prohibit off market movements, while remaining revocable by clients.
SEBI clarifies that a client's Power of Attorney to a stock broker or broker-cum-depository participant is optional and must not be a precondition for services. Permitted PoA powers are limited to transfers from the client's beneficial owner account to meet margin, delivery or settlement obligations arising from trades through the same broker, and to apply for or redeem investment products on client instruction with an audit trail. PoAs must list related-party bank and demat accounts, be revocable at any time without affecting prior settlement obligations, and must not enable off-market transfers between non-related parties.
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