Wednesday, February 10, 01:58 am IST
| Feedback
Moneycontrol » News Center » Business » Business News

Want more about Business to land in your mailbox?

Set an alert here

SEBI cautions brokers on misuse of power of attorneys

Published on Tue, Nov 03, 2009 at 20:35   |  Updated at Wed, Nov 04, 2009 at 11:19  |  Source : CNBC-TV18

Market regulator Securities and Exchange Board of India (SEBI) is keeping a close watch on rising investor complaints on the misuse of Power of Attorney (PoA) by brokers. The industry watchdog has put out a discussion paper and will be issuing guidelines to address the issues of unauthorised trades and misappropriation of funds. CNBC-TV18’s Priyal Guliani reports.

SEBI has put out a discussion paper and has proposed that a specific PoA should be executed which basically limits the usage of the PoA. The transfer of securities held in the clients account should be for the limited use of margin and delivery obligation. Also, the usage of the funds from the client’s bank account should be limited for the usage of settlement obligation.

MS Sahoo, Whole Time Member of SEBI says SEBI is currently under a discussion stage and is are planning to come out with a guideline, which will have many dos and don’ts. “It will put obligations on the brokers and depository participants to be responsible for the use of PoAs.”

Other than that what SEBI is proposing is that the broker and the depository participants shall provide an original copy to the client after the execution and send SMS alerts on any transactions to the client. Also, there will be a clause included with regard to the settlement of disputes in the PoA.

Related news from other sources
CEO Wall See All

Harsh Manglik

Harsh Manglik

Chairman

Accenture India

Accenture India to hire aggressively for select verticals

Vishal Doshi

Vishal Doshi

Managing Director

Shrenju & Company

Shrenuj & Company will project 15% rev rise this yr

MP Taparia

MP Taparia

Chairman

Supreme Petrochemicals

Supreme Petrochemicals expects Rs 2200cr rev in next 1.5yrs

Vineet Nayyar

Vineet Nayyar

Chief Executive Officer

HCL Technologies

HCL Tech plans to merge arms with itself, eyes new spots

WHAT OTHERS LIKE
  • Most Read
  • Most Viewed
24 Hours
7 Days
1 Month
NEWS FROM OUR PARTNERS
©Network 18, 2010. All Rights Reserved