MANU/SDEP/0008/2020

Ministry : Securities and Exchange Board of India

Department/Board : Market Intermediaries Regulation and Supervision Department

Circular No. : SEBI/HO/MIRSD/DOP/CIR/P/2020/158

Date : 27.08.2020

Notification/ Circulars Referred : Circular no. CIR/MRD/DMS/13/2010 dated April 23, 2010 MANU/SSMD/0032/2010;Circular no. CIR/MRD/DMS/28/2010 dated August 31, 2010 MANU/SSMD/0067/2010

Citing Reference:
Circular no. CIR/MRD/DMS/13/2010 dated April 23, 2010 MANU/SSMD/0032/2010  Referred

Circular no. CIR/MRD/DMS/28/2010 dated August 31, 2010 MANU/SSMD/0067/2010  Referred

To,

All Depositories
All Recognised Stock Exchanges

Madam / Sir,

Execution of Power of Attorney (PoA) by the Client in favour of the Stock Broker / Stock Broker and Depository Participant

1. SEBI, vide circular no. CIR/MRD/DMS/13/2010 dated April 23, 2010, issued Guidelines for execution of Power of Attorney (PoA) by the client favouring Stock Broker / Stock Broker and Depository Participant (hereinafter referred to as "Guidelines"). Certain clarifications were issued later vide circular no. CIR/MRD/DMS/28/2010 dated August 31, 2010.

2. Paragraph 5 of the circular dated April 23, 2010, specifies the following:

"Standardizing the norms for PoA must not be construed as making the PoA a condition precedent or mandatory for availing broking or depository participant services. PoA is merely an option available to the client for instructing his broker or depository participant to facilitate the delivery of shares and pay-in/pay-out of funds etc. No stock broker or depository participant shall deny services to the client if the client refuses to execute a PoA in their favour."

3. Further, paragraph 12 - 20 of the Gui........