Karvy case fallout: Brokers may lose power of attorney privilege

The Securities and Exchange Board of India (Sebi) may soon bar brokers from using power of attorney (PoA) privileges that give them control of clients’ demat accounts to prevent misuse as in the case of Karvy Stock Broking. The regulator plans to mandate that brokers taking collateral from clients can only create a pledge on the shares with customer consent. The step is aimed at protecting clients’ shares, said two people close to the