Is it safe to give Power of Attorney to your broker to operate demat a/c?

Biker

Active Member
#1
I am about to open a new trading account with a broker and see that there is a form of PoA in nearly all account opening filling forms.

Is this a norm? Is it safe? If I give PoA to broker then he can debit my shares whenever he wants!
 
#2
Never commit this misake.
he will play d mkt at his whims and fancy at your cost. If he is a so good at mkts then y he s wasting his time managing ur money.Also this is not normal.
 

mastermind007

Well-Known Member
#3
I am about to open a new trading account with a broker and see that there is a form of PoA in nearly all account opening filling forms.

Is this a norm? Is it safe? If I give PoA to broker then he can debit my shares whenever he wants!
Never commit this misake.
he will play d mkt at his whims and fancy at your cost. If he is a so good at mkts then y he s wasting his time managing ur money.Also this is not normal.
Every single broker you approach for NSE/NFO will have Power of Attorney in their form;

Some like HDFC call it "Irrevocable Power of Attorney".

Most brokers send collection boys (who come with paperwork to get your sign) will claim it is mandatory (and that there is no harm in signing).

When you refuse, he will call his manager and usually they'll offer a compromise and you'll be able to get by without signing.

HDFC Bank, ICICI etc ... refuse to open the account without POA so you just send the collection boy back empty-handed.
 
#4
But I heard POA is required if you require internet trading. So if you want Internet trading, you may need to sign POA. let others confirm this
 

mastermind007

Well-Known Member
#5
But I heard POA is required if you require internet trading. So if you want Internet trading, you may need to sign POA. let others confirm this
Not true. I trade online (as well as offline) without signing power of attorney.
 

Relish

Well-Known Member
#6
Sir How to revoke power of attorney given to SMC ?
 

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