SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/158 dated 27.08.2020

The Circular talks about Guidelines issued by SEBI on Power of Attorney (PoA) signed by Client in favor of the Stock Broker. The Circular mentions that the PoA is only an optional document, and the same should not be included in the documents to be signed compulsorily when registering with Proxy Advisors. Power of Attorney documents should be deliberated upon and signed separately by the Client. The Circular clarifies the stance and motive of SEBI to protect the investor/client. The Circular also mentions the restrictions applicable on the PoA, even if one is obtained. The restrictions include restrictions on transferring funds, transferring personal assets, or transfer of securities for off-market trades, among other things.