In India most of the people dont even bother to read the a/c opening form.. let alone reading the detailed terms and conditions. Power of Attorney is one of the root cause of all miseries that investors face.
I am against signing any POA, but specifically I would say POA agreement format of IL&FS demat accounts is very loosely worded. The wordings mentioned in agreement would allow broker to sell shares in any other of the broker's a/cs, etc. Moreover there are few clauses giving power to broker to sign forms, affidavits and other legal agreements.
Most of the discount broker clients have demat with IL&FS.. and those brokers have to dance as per IL&FS tunes. I get charged twice for demat script debit while selling but still I have not given POA. One can directly give instructions from CDSL login and doesnt have to submit debit slips to DP physically.
I dont mean to say that wrong doings can be by all brokers.. but apart from trustworthiness, there can be operational issues/errors too.. So why to take chance when it comes to your life's hard earned savings? . SEBI, BSE, NSE are doing fine job to protect investors but that doesnt mean one should lenient about his own money.
Disclaimer: Whatever I have mentioned above is on basis of my limited intelligence and knowledge. Maybe I am too cautious. Request you to do your own legal due diligence through a lawyer of any legal agreements you sign.
I am against signing any POA, but specifically I would say POA agreement format of IL&FS demat accounts is very loosely worded. The wordings mentioned in agreement would allow broker to sell shares in any other of the broker's a/cs, etc. Moreover there are few clauses giving power to broker to sign forms, affidavits and other legal agreements.
Most of the discount broker clients have demat with IL&FS.. and those brokers have to dance as per IL&FS tunes. I get charged twice for demat script debit while selling but still I have not given POA. One can directly give instructions from CDSL login and doesnt have to submit debit slips to DP physically.
I dont mean to say that wrong doings can be by all brokers.. but apart from trustworthiness, there can be operational issues/errors too.. So why to take chance when it comes to your life's hard earned savings? . SEBI, BSE, NSE are doing fine job to protect investors but that doesnt mean one should lenient about his own money.
Disclaimer: Whatever I have mentioned above is on basis of my limited intelligence and knowledge. Maybe I am too cautious. Request you to do your own legal due diligence through a lawyer of any legal agreements you sign.
