New Delhi, December 9
The National Stock Exchange (NSE) on Monday advised investors to be careful while executing Power of Attorney (PoA) with stock brokers and specify all the rights that brokers can exercise on their behalf.
The latest communication comes against the backdrop of Karvy Stock Broking Ltd unauthorisedly transferring securities worth Rs 2,300 crore of more than 95,000 clients, into its account, by misusing the PoA given by its clients.
On November 22, SEBI barred Karvy from taking new clients in respect of its stock broking activities and also prevented it from using the PoA given by clients after the broker was found to have allegedly misused clients’ securities.
The leading bourse has asked investors “to be careful while executing the PoA (Power of Attorney) — specify all the rights that the stock broker can exercise and time frame for which PoA is valid”. — PTI
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