POWER OF ATTORNEY: Discussion

N

nimishsdll

New Member
#1
#1
During the process of filling form for new account opening there are various documents we need to sign. However brokererage firm insist us to sign the POWER of ATTORNEY as well (which is always in there favour). Somehow I do not feel much comfortable by doing so. Experienced members can throw some lights as to why we need to sign this? Do I have an option not to assign them POWER OF ATTORNEY?
I am new to this procedure but I want to make it sure that by giving them POWER OF ATTORNEY I am not doing anything wrong.
 
megapixel

megapixel

Well-Known Member
#2
#2
nimishsdll said:
During the process of filling form for new account opening there are various documents we need to sign. However brokererage firm insist us to sign the POWER of ATTORNEY as well (which is always in there favour). Somehow I do not feel much comfortable by doing so. Experienced members can throw some lights as to why we need to sign this? Do I have an option not to assign them POWER OF ATTORNEY?
I am new to this procedure but I want to make it sure that by giving them POWER OF ATTORNEY I am not doing anything wrong.
Click to expand...
they need this for smooth functioning of demat operation....they will credit / debit...pay etc on behalf of you.....

I understand you might feel uncomfortable.....but see nobody wants to shut down their business ...getting license canceled by SEBI/NSE ...doing fraudulent things with this POWER.

don't worry ....all brokers does it ...its normal.
 
S

sr114

Well-Known Member
#3
#3
megapixel said:
they need this for smooth functioning of demat operation....they will credit / debit...pay etc on behalf of you.....

I understand you might feel uncomfortable.....but see nobody wants to shut down their business ...get license canceled by SEBI/NSE ...doing fraudulent things with this POWER.

don't worry ....all brokers does it ...its normal.
Click to expand...
MP

when i started trading, ( 2005-) i had to provide the DIC to broker after each and every sale. and it never hampered my way of trading and u ask the forum - lot of people did that and they never complained. ( this was followed till 2005 end). then came the concept of POA for smooth functioning of the sale of stocks.

i never had any problem before the advent of POA. so the smooth functioning is a misconception.

sr
 
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