Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Tally On Cloud Tally on Cloud: Ready for the Daily Backup Requirement
Keep your Tally books accessible from anywhere while supporting your Rule 46(8) obligations. With daily backups configured on servers physically located in India, Tally on Cloud helps you maintain the backup arrangement required for electronic books of account under the Income-tax Rules, 2026. Move your Tally to the cloud with confidence.
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.
 Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief
 ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know
 Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose
 CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27
 CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details
 Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window
 Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do
 Tax audit deadline September 30: Common mistakes taxpayers should avoid
 Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck
 Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money

Sebi wants to attach conditions
November, 04th 2009

The Securities and Exchange Board of India (Sebi) on Tuesday proposed guidelines for incorporating specific conditions in the power of attorney (PoA) given by clients to their stock brokers and depository participants.

PoA is an authorisation letter to act on someone elses behalf in a business transaction.

Earlier, brokers used to take a blanket PoA from their clients, which gave them the freedom to deal with clients shares and funds as they deemed fit. This led to many brokers misusing the PoA for their own benefit.

They would trade in clients shares lying in demat accounts without their knowledge to take advantage of the movement in stock prices, use one clients money to fund the margin obligation of another client, or run up large number of trades to generate higher commission.

According to recommendations by Sebis secondary market advisory committee, a specific PoA will have to be executed in favour of a stock broker, to transfer securities held in the beneficial owner accounts of the client for stock exchange-related margin or delivery obligations arising out of trades executed by the client on the stock exchange through the same stock broker.

Transfer of funds from the bank accounts of the clients for the limited purpose of meeting the settlement obligations of the clients/margin requirements of the clients in connection with the trades executed by the clients on the stock exchange through the same stock broker, the regulator said in its discussion paper.

Provide the particulars of the beneficial owner accounts and the bank accounts of the clients that the stock broker is entitled to operate, the discussion paper said. Besides, transfer of securities will be restricted to the clearing member-pool account or client-margin account of the stock broker only.

Sebi also said the PoA cant be executed in the name of any employee or representative of the stock broker/depository participant, but only in the name of the entity concerned.

Brokers will also have to provide the investor with an original copy of the PoA after execution. The PoA will authorise the broker to send SMS alerts regarding the transactions. It will have to be executed and stamped as per the rules prevailing in the place where the PoA is executed.

The PoA should provide for a clause for settlement of disputes arising out of the operations of the PoA. Broking disputes will have to be settled under the Bye Laws of the stock exchange concerned where the trades have been executed and depository-related issues under the Bye Laws of the depository concerned, where the demat account of the beneficial owner concerned is held, the discussion paper said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2026 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting