Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: VAT RATES :: articles on VAT and GST in India :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: cpt :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
News Headlines »
 6 important income tax rules for individuals which will change from April 1, 2017
 Key changes in income tax rates individuals need to look at from 1 Apr
 Provisional Enrollment under Goods and Service Tax (GST)
 Ten income tax changes that will come in to effect from April 1
 New income tax provisions you need to be aware of
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return

SEBI, Good show
November, 05th 2009

The Securities and Exchange Board of India (SEBI) has done well to bring out a discussion paper on power-of-attorney (PoA) mandates. Given reports of widespread misuse, it is only fitting that SEBI, in its role of furthering investor education, should lay down the minimum safeguards to be incorporated in such authorisations.

Unfortunately, financial literacy, globally, and especially in India, is woefully inadequate. The net result is a large number of, not only individuals but corporates (and if the recent financial crisis is any indication) and sophisticated financial players undertake financial transactions without understanding their full implications.

In such a scenario, SEBIs role, as guardian of investors interests, to educate investors, especially retail investors to whom it owes a higher duty, of the pitfalls in dealing in financial markets is paramount. One such pitfall arises from liberal, and often poorly-thought-out, grant of PoA mandates.

A PoA is a legal authority given to another person/entity to act on your behalf, strictly in accordance with the authorisation given to it. Hence it must be very carefully worded and even more carefully delegated.

The SEBI paper spells out the basic requirements to be incorporated in PoA mandates to be granted to stock brokers/ depository participants. Cautionary advice such as the PoA shall not be executed in the name of any employee or representative of the stock broker and/or depository participant, but only in the name of the concerned entity and the PoA should be executed and stamped as per the rules /law prevailing in the place where the PoA is executed or the place where the PoA is kept as a record, as applicable may seem basic to a person who has some knowledge of law but not to the vast majority who transact in our capital markets.

It is common knowledge that most people sign documents, whether loan documents of banks, or subscribe to initial public offerings without reading the related prospectus. True, a fool and his money are easily parted. But it is the regulators job to teach investors not to make such parting easier. The discussion paper is a welcome step in that direction.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions