Execution of Power of Attorney (PoA) by the Client in favour of the Stock Broker/ Stock Broker and Depository Participant - Clarifications

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..... the Client in favour of the Stock Broker/ Stock Broker and Depository Participant - Clarifications 1. SEBI vide circular no. CIR/MRD/DMS/13/2010 dated April 23, 2010 issued guidelines regarding execution of Power of Attorney (PoA) by the client in favor of Stock Broker / Stock Broker and Depository Participant. 2. SEBI has received representation from Market Participants seeking guidance a .....

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..... y by Clients favouring Stock Brokers / Stock Broker and Depository Participants Sl No Clauses/ Provisions of the PoA Circular Clarifications 1 Standardizing the norms for PoA must not be construed as making the PoA a condition precedent or mandatory for availing broking or depository participant ser .....

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..... P may revoke those authorizations that are inconsistent with the present guidelines by communicating the inconsistent clauses to the existing clients. In the event, the deleted clauses are not accepted by the client, Stock Broker/ DP may be required to either obtain fresh PoA or close the account. In case of any addition to the existing PoA, Stock Broker / DP shall be required to obtain a new PoA .....

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..... uant to the instructions of the Client(s). However, a proper audit trail should be maintained by the Stock Broker to prove that the necessary application/act was made /done pursuant to receipt of instruction from Client. Redemptions are also included in PoA pursuant to client s instructions. 5 PoA executed in favour of a Stock Broker and Deposi .....

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..... ll not be applicable for any outstanding settlement obligation arising out of the trades carried out prior to receiving request for revocation of PoA. Further, the PoA revocation requests should be dated and time stamped by the brokers for ensuring proper audit trail. 7 The POA shall not facilitate the stock broker to do the following: 12. Transfer of securit .....

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