SEBI vide circular dated April 04, 2022, has specified clarification with regards to circular no. CIR/MRD/DMS/13/2010 dated April 23, 2010, issued guidelines regarding the execution of Power of Attorney (PoA) by the client in favor of Stock Broker / Stock Broker and Depository Participant.
1. Power of Attorney is optional and should not be insisted upon by the stockbroker or stockbroker depository participant for the opening of the client account.
2. While executing a PoA, authorization is given by the client to the stockbroker/stockbroker and depository participant, to access the Beneficial Owner (BO) account of the client to meet settlement obligations.
3. In order to make the process more transparent and simpler, the two conditions as specified in paragraphs 1.2.1 and 1.2.2 shall be made part of a separate document viz. ‘Demat Debit and Pledge Instruction’(DDPI)(Annexure-A), under which the clients shall explicitly agree to authorize the stockbroker/stockbroker and depository participant to access their BO account for the limited purpose of meeting pay-in obligations for settlement of trades executed by them.
This circular shall be applicable with effect from July 01, 2022
Circular Link
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