Points Against Signing Power Of Attorney (Especially IL&FS demat)

#1
In India most of the people don't even bother to read the a/c opening form.. let alone reading the detailed terms and conditions. Power of Attorney is one of the root cause of all miseries that investors face.

I am against signing any POA, but specifically I would say POA agreement format of IL&FS demat accounts is very loosely worded. The wordings mentioned in agreement would allow broker to sell shares in any other of the broker's a/cs, etc. Moreover there are few clauses giving power to broker to sign forms, affidavits and other legal agreements.

Most of the discount broker clients have demat with IL&FS.. and those brokers have to dance as per IL&FS tunes. I get charged twice for demat scrip debit while selling but still I have not given POA. One can directly give instructions from CDSL login and doesn't have to submit debit slips to DP physically.

I don't mean to say that wrong doings can be by all brokers.. but apart from trustworthiness, there can be operational issues/errors too.. So why to take chance when it comes to your life's hard earned savings? SEBI, BSE, NSE are doing fine job to protect investors but that doesn't mean one should lenient about his own money.

Disclaimer: Whatever I have mentioned above is on basis of my limited intelligence and knowledge. Maybe I am too cautious. Request you to do your own legal due diligence through a lawyer of any legal agreements you sign.
 
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