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    Question

    Which of the following regulatory body issues fresh

    guidelines Demat Debit and Pledge Instruction to curb misuse of clients’ Power of Attorney?
    A RBI Correct Answer Incorrect Answer
    B IRDAI Correct Answer Incorrect Answer
    C SEBI Correct Answer Incorrect Answer
    D PFRDA Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    SEBI came out with fresh guidelines wherein execution of a new document will be made compulsory for transfer of securities towards deliveries and settlements. The guidelines, which will be effective from July 1, also comes against the backdrop of instances of misuse of PoAs. The use of DDPI will be limited only for two purposes -: Forst Purpose is for the transfer of securities held in the beneficial owner account of the client towards stock exchange related deliveries or settlement obligations arising out of trades executed by such a client. Second Purpose is for pledging/re-pledging of securities in favour of the Trading Member(TM)/Clearing Member (CM) for the purpose of meeting margin requirements of the client.

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