SEBI to beef up norms of PoA to brokers

In order to tighten knuckles of brokers who have been given the power of attorney (PoA), capital market watchdog Securities and Exchange Board of India (SEBI) has consulted a high level committee, comprising representatives from stock exchanges, depositories, investor’s association, to suggest guidelines for the PoA that investors issue in favor of their brokers.

After being flooded with complaints from investors regarding misuse of the PoA by their brokers, the SEBI would bring in a standard PoA based on committee’s recommendation to amend the broker-client agreements.

The SEBI has issued a proposal to ensure that the PoAs are issued separately and are specific and not general in nature.