Hi,
I want to open a Demat account and contacted one of the brokers for the same purpose. I am a little wary about something they told me. It seems I need to sign an agreement which gives them the right to sell my shares without my permission (something like power of attorney). I asked them why should I sign such a document, and they say that it is mandatory with all brokerage firms and that they will not use it. They are keeping it only as security in case I fail to fulfill my obligations. I wonder whether all brokerage firms ask their clients to sign such an agreement? Please advice.
Thanks
Ashvish
I want to open a Demat account and contacted one of the brokers for the same purpose. I am a little wary about something they told me. It seems I need to sign an agreement which gives them the right to sell my shares without my permission (something like power of attorney). I asked them why should I sign such a document, and they say that it is mandatory with all brokerage firms and that they will not use it. They are keeping it only as security in case I fail to fulfill my obligations. I wonder whether all brokerage firms ask their clients to sign such an agreement? Please advice.
Thanks
Ashvish