Sl No

Clauses/ Provisions          of the          PoA
Circular

Clarifications

1

Standardizing the norms for PoA must not be construed as making the PoA a condition precedent or mandatory for availing broking or depository participant services. PoA is merely an option available to the         client for instructing his broker        or depository participant to facilitate the delivery of shares and   pay- in/pay-out of funds etc. No stock broker or depository participant shall deny services to the client if the client refuses to execute a PoA in their favour.

Only    internet based trading  exempted.

2

The   Stock Brokers       shall take necessary     steps to implement        this circular latest by May 31, 2010 for the new clients and  ensure          to take necessary steps latest by September 01, 2010  to revoke those authorizations given      by the existing clients     to       the          stock brokers/ stock broker and depository participants through PoA that are inconsistent with the present guidelines.

Stock Broker/ DP may revoke those authorizations that are inconsistent with         the  present guidelines         by communicating  the  inconsistent clauses to the existing clients. In the event, the deleted clauses are not accepted by the client, Stock Broker/ DP may be required to either obtain fresh PoA or close the account. In case of any addition to the existing PoA, Stock Broker / DP shall be required to obtain a new PoA from clients.

3

PoA executed in favour of a Stock Broker by the client should be limited to the following:

“(i) Transfer of securities held in the beneficial owner account(s) of the client(s) towards stock exchange related margin / delivery obligations arising out of trades executed by the Client(s) on the stock exchange through the same Stock Broker.”

Margin / Delivery obligations shall also include settlement obligations, if any.

4

PoA executed in favour of a Stock Broker by the client should be limited to the following:

“(iii) To apply for various products like     Mutual   Funds,    Public  Issues (shares   as well    as debentures), rights,     offer        of       shares, tendering shares in open offers etc. pursuant to the instructions of the Client(s). However, a proper audit trail should be maintained by the Stock Broker to  prove      that         the  necessary application/act   was    made       /done pursuant     to   receipt    of   instruction from Client.”

Redemptions are also included in PoA pursuant to client’s instructions.

5

PoA executed in favour of a Stock Broker and Depository Participant by the client should provide the list of clients’ & brokers’ Bank accounts & demat accounts where funds and securities can be moved. Such bank & demat accounts should be accounts of related party only.

The list of clients’ & brokers’ Bank accounts & demat accounts may be updated / amended by proper communication without executing a new PoA every time.      Copies of such   communications   may         be preserved as annexure to the PoA.

6

PoA executed in favour of a Stock Broker and Depository Participant by the client should be revocable at any time, without notice.

PoA executed in favour of a Stock Broker   /  Stock       Broker and Depository Participant by the client should be revocable at any time. However, such revocation shall not be applicable for any outstanding settlement obligation arising out of the   trades carried  out     prior    to receiving request for revocation of PoA.   Further, the PoA revocation requests should be dated and time stamped  by  the  brokers for ensuring proper audit trail.

7

The POA shall not facilitate the stock broker to do the following:

“12. Transfer of  securities  for off market trades”

The PoA  Shall not facilitate off-market trades between parties other than the related  parties as mentioned in the PoA.