The Securities and Exchange Board of India vide its Notification dated 29th May 2020 has decided to extend the date of implementation of norms pertaining to power of attorney given by clients to trading members or clearing members.
SEBI in its earlier circular dated 25th February 2020 has specified guidelines with regard to Margin obligations to be given by way of Pledge/ Re-pledge in the Depository System, however, it was reiterated that the provision regarding holding of Power of Attorney by TM / CM not to be considered as equivalent to the collection of margin by TM / CM in respect of securities held in the Demat account of the client.
Further based on the representations received from stockbrokers regarding the difficulty in implementing this provision in lockdown situation due to work in progress by Market Infrastructure Institutions, it has been decided to extend the implementation date of the aforesaid provision to August 01, 2020, and align it with the implementation of the mechanism of pledge re-pledge through the Depository system.
