Points against signing Power Of Attorney (especially IL&FS demat)


Active Member
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.


Active Member
RKSV has tie up with IL&FS. I was thinking of opening account iwth that broker. I've seen this concerns before. Can someone with IL&FS pls share their experiences?

IL&FS is worst than any govt department. Pathetic service and high charges. I am in process of finding another good demat service provider which I can link with RKSV. I might altogether stop trading with RKSV (not much satisfied with their services too) if I find good broker + demat combo.

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