How to retain control even after giving Power of Attorney (PoA)? Investors must know these

The investors must know that even when they give PoA, they should retain control over certain things.

How to retain control even after giving Power of Attorney (PoA)? Investors must know these. Source: Reuters

There is an important update for the investors regarding the Power of Attorney (PoA). In this regard, the investors must know that even when they give PoA, they should retain control over certain things. In case of further details and queries, the interested individuals can login to the official website of NSE India at nseindia.com.

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"Having a PoA might make your investment journey much easier, but it's important to keep a track of your accounts periodically," NSE India has recently tweeted from its official Twitter handle.

Having a PoA might make your investment journey much easier, but it's important to keep a track of your accounts periodically!#InvestorAwareness #NSE #StockMarket #ShareMarket pic.twitter.com/7Gy9Ol51ai

— NSEIndia (@NSEIndia) March 7, 2022

PoA is the legal authority that one gives to one's stockbroker to operate his or her account for the purposes authorised by the individual.

How to retain control after taking PoA?

Now, even after giving PoA, the investors must retain control by choosing to receive Contract Notes, quarterly statement of accounts, demat account statement at his or her address.

Executing of PoA

There are certain things than an investor must keep in mind while executing PoA. These are as follows:

1) One needs to specify all the rights that the stock broker can exercise and also the timeframe for which the PoA is valid.

2) The investor must also note that the PoA is not a mandatory requirement as per SEBI or exchanges.

Revoking of PoA

An investor must note that PoA should generally be given for a limited period. The period should never be left open-ended in the hand of the broker or member but it should be clearly mentioned, as per NSE. The choice of renewal or otherwise should be exercised after reviewing the manner in which PoA has been put to use by the PoA holder.

Now, in order to cancel or revoke one's PoA, the investor must fulfill the requirement of the advance notice period. Furthermore, at the time of giving PoA, one has to make sure that the individual's right of cancellation is clearly stated in the PoA.

In case of any further details and queries, the interested individuals can login to the official website of NSE at nseindia.com.

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