Comment on POA - Power of Attorney for your Demat account
commented on
10 Apr 2016, 01:34 PM
Hello Nithin/Venu,
My wife wanted to start a demat account but she did raise certain concerns which I admit I’m unable to answer convincingly. I’d like to know how my investments are protected by zerodha.
1) I understand that the shares are issued directly in my name and aren’t transferable without authorization. But after I sell those shares, the money stays in zerodha bank account until it is transferred to my bank account. How have you ensured that a fraudulent top level manager with access to the bank account doesnt withdraw the amount?
2) If zerodha associate does transactions on my behalf (by mistake suppose) without my authorization (which is difficult to define legally because i’ve already signed off POA to you), would zerodha reverse the transaction? are you sufficiently covered against such malpractice instances?