Comment on On the Karvy Issue

Dinesh Jain commented on 03 Dec 2019, 03:01 PM

Dear Nithin ,

I am reproducing the point no 4 in POA signed by me with Zerodha :

4. To issue instructions relating, executing delivery/receipt instructions, pledge creation instructions, pledge closure instructions, lending and borrowing instructions, to operate the depository account by issue and receipt of instructions for the above mentioned purpose and such other authorization given by me/us severally on behalf of all of us, or all/any of us jointly, in any electronic form, in any format and at any time either through the portal of Zerodha or through the internet will be validly constituted attorney to intimate the same to the Depository Participant for the purpose of debiting or crediting my account opened with the Depository Participant.

To me this is quite an open power taken to do anything which you want to do . This is not restricted for my own transaction purpose . By virtu of this you can pledge my security for your business purpose . It is a different matter that you do not use this power voluntarily but then why this unlimited power is taken in POA and why should it not be restrict for my transaction purpose only .

Please clarify .


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