Things to Know Regarding Power of Attorney to Safeguard Your Stock Investments

power of attorney
  • You are needed to receive a copy of the executed Power of Attorney after completion of the KYC procedure from your broker.
  • In a joint account, all account holders are needed to execute the PoA.
  • Power of Attorney can solely be given by the account holder and not a family member.
  • You can register for online applications through Speed-e, provided by depositories (NSDL and CSDL) for online transport of securities as an alternative to Power of Attorney.
  • Make sure you receive Contract Notes within 24 hours of your trades and Statement of Account at the least as soon as in a quarter from your Stock Broker.
  • Securities given by you towards margin are not entitled to be pledged through your Stock Broker for raising funds.
  • If you have got opted for a running account, please make sure that the stockbroker settles your account frequently and in any case not later than 90 days (or 30 days when you have opted for 30 days settlement).
  • Running account authorisation is required by a broker to hold funds in investor’s buying and selling account so that the broker can hold funds for a fixed amount of time, say, a month or a quarter. If an investor does not sign this document, then the investor has to pay the whole amount on purchase and also will be paid the complete amount on sale.
  • Do not keep your funds and securities idle with the Stock Broker.
  • Usually, login into your account to verify balances and verify the Demat statement obtained from depositories.
  • The users of SPEED-e can check the latest balances and transactions in their Demat accounts by a facility named Internet-based Demat Account Statement (IDEAS) and monitor the status of execution of instructions.
  • Check information sent by Exchanges every month in respect of funds and securities balances reported by the trading member and quickly raise a concern if you notice any discrepancy.
  • Always keep your contact details, such as Mobile Number, Email ID updated with the stockbroker. You may take up the situation with Stock Broker or Exchange if you are not getting the messages from Exchange or Depositories regularly.
  • If you observe any kind of discrepancies in your account or settlements, directly contact your stockbroker and if the Stock Broker does not respond, contact in Exchange/Depositories.
  • When there is a shortfall in the margin or failure of payment by you, the Power of Attorney holder (i.e. stockbroker) is authorised to excise authority under the Power of Attorney to dispose of securities to the limited amount of the money due from you.

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Things to Know Regarding Power of Attorney to Safeguard Your Stock Investments

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