Power of Attorney

Power of Attorney

• Definition: A Power of Attorney (POA) is a document that gives someone else the right to access and manage your accounts and money.
• Details: In the securities market, a client can execute a POA in favor of a stock broker and/or depository participant to authorize them to operate their demat and bank account for share delivery and fund transactions.

Key Features of Power of Attorney

• Optionality: Signing a Power of Attorney is optional and voluntary, as per SEBI guidelines.
• Revocability: A Power of Attorney can be revoked at any point in time.
• Authorization: A POA authorizes the stock broker and/or depository participant to operate the client's demat and bank account for specific purposes.

Important Considerations

• SEBI Guidelines: Clients should refer to the guidelines issued by SEBI, stock exchanges, and depositories available on their official websites (e.g., https://www.sebi.gov.in/) for executing a Power of Attorney.
• Dispute Resolution: In case of unauthorized share transfers, clients should immediately contact their stock broker and, if necessary, the depository or exchange for resolution.