More brokerages may have used clients' funds

'The reason being that PoA are in a standardised format, and hence it has become very difficult for an investor to know the nitty-gritty involved in the scam, if any,' the source said, without divulging the details of such brokers. After the aftermath of the Karvy scandal, it has been observed that broking houses fear escalation in compliance costs as the market regulator Securities and Exchange Board of India (Sebi) is set to further tighten the regulatory norms to save the investors. 'Any such increase in costs could strain smaller brokerages financially,' the source said. The National Stock Exchange of India (NSE) too has cautioned that while executing the power of attorney, the customer should ask the broker to specify all the rights that he can exercise and timeframe for which PoA is valid. 'It may be noted that PoA is not a mandatory requirement as per Sebi/exchanges. , one should register for online applications viz Speed-e and Easiest provided by depositories for online delivery of securities as an alternative to power of attorney,' the NSE warned. ... DailyhuntDisclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: Deccan Chroniclehttp://raajdenenews.soup.io/