Stiff norms to curb misuse of POAs by brokers likely

Stiff norms to curb misuse of POAs by brokers likely

FPJ BureauUpdated: Saturday, June 01, 2019, 07:28 AM IST
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New Delhi : To check any fraudulent use of investor accounts by brokers, capital markets regulator Sebi plans to tighten norms for the Power of Attorney taken by them from their clients including by colour-coding such PoAs as per the risks involved in such transfer of powers.

 A number of measures have been suggested by an expert group set up by Securities and Exchange Board of India to ring -fence the POAs given by investors to their brokers from any possible misuse that are under consideration of the regulator, sources told PTI.

The existing guidelines already define the acts that can or can’t be performed by a stock broker or a depository participant in pursuance of rights conferred by the client by execution of POA.

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