NSE advises investors on executing, revoking Power of Attorney (PoA) - know what it is?

Domestic stock exchange NSE has advised investors not to take Power of Attorney (PoA) lightly. It recommends that investors must understand all the details before giving anybody PoA. The above advice has been given via a tweet on its official twitter handle. 

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NSE has recently tweeted from its official Twitter handle regarding the execution of Power of Attorney (PoA).

"Don't take Power of Attorney (PoA) lightly. Understand all the details before you assign it to someone," the NSE tweet said.

Don't take Power of Attorney (PoA) lightly.
Understand all the details before you assign it to someone.#NSE #InvestorAwareness #PoA #StockMarket #ShareMarket pic.twitter.com/tFRUmImfof

— NSEIndia (@NSEIndia) February 5, 2022

What is PoA?

In this regard, one must be aware of what is a PoA. It must be noted that PoA is the legal authority that one gives to one's stockbrokers to operate his or her account for the purposes authorised by the individual.
Executing 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 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.