InvestorQ : Has SEBI put off the implementation of Power of Attorney rules also till August 2020?
Mahima Roy made post

Has SEBI put off the implementation of Power of Attorney rules also till August 2020?

Answer
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Aditi Sharma answered.
4 months ago


Due to the stressed economic situation, SEBI has extended the date for implementing norms pertaining to power of attorney (POA) till Aug-20. This pertains to POA given by clients to trading members or clearing members. In February 2020, SEBI had specified guidelines with regard to margin obligations to be given by way of pledge. That was to be effective from June 01 but will now be effective from August 01. Now traders will be allowed to give power of attorney (POA) for margin positions till August 01 without pledge or re-pledge. However, title transfer of securities to the client collateral account of the TM/ CM for margin purposes will not be permitted. SEBI had received representations from stock brokers regarding difficulty in implementing the provisions.