Do I need to be concerned about a Pledge instruction clause in my Demat KYC document?

Mayyappa

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Apr 15, 2020
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#1
I have opened a Demat account with a discount broker. As part of online registration procedure, I did e-Sign of Demat KYC document. While going thru the document later, I came across a clause which states that "I/We would like to instruct the DP to accept all the pledge instructions in my/our account without any other further instruction from my/our end." which is ticked it as 'Yes'.
My question is; Is this common/generic clause with acceptance as 'Yes' for all KYCs OR I need to be concerned about wording "without any other further instruction from my/our end" in the clause? Is it going to be risky?
Do I need to ask the broker to modify the clause to 'No' and resend new KYC? or Should I stop trading using this broker’s services altogether?
Thank You.
 

Mayyappa

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#2
Can any expert answer my query? Can some one tell me that this clause give rights to the broker to sell my shares without my permission or knowledge?
 

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