Sharekhan - force to sign POA

[supaTrade]

Friends,

A POA is not mandatory for trading weather its offline or online. But then for "every" sale of security you will have to submit a Delivery Instruction slip to the broker "in person" toherwise there will be bad delivery (i.e. auction).

A POA gives the power to the broker to sell on your behalf and hence he wont have to take the instruction slip from you for every sale. However its upto you if you fear giving this much power to the broker, then you can refuse to sign a POA.

In case any broker forces you to sign a POA, you should complain to SEBI. Sebi guidelines clearly show that a broker cannot force clients signature on the POA.

 

[sanjayt]

Yes It is not compulsary But still all brokers want so that they have control on your a/c.
First of all Poa should be of 2 types.
1 for those who take margin trading facilty they are the real bakaras for brokers.
2. for those who just for the ease of transfering the stock to the broker when we sell.

There should be a clause for those who dont opt margin trading that brokers are not allowed to sell the shares of those who dont take margin trading.

But who cares to complain to sebi.
We all should come togather and fight our way and take this to sebi even individually also if one takes out time and flood the inbox & mailbox of sebi about the tactics these brokers take then something better would result.
sanjayt