Can a Brokerage sell Mutual fund units from client demat account

This is in context with what has happened in Karvy wherein the mutual fund units in client demat account were sold by Karvy. This is very serious matter I want to know as to what regulator has done in this regard. Are they willing to make there position transparent and Zerodha stance on this.

POA can be used only for transactions executed on the exchange. What SEBI has down now is seed all demat accounts with client code registered with the exchanges. Until now, there was no link between demat and trading. With this link now in place, demat securities will soon be possible to be debited only if there is a corresponding exchange transaction in the same client account.

Along with this SEBI has brought in many other regulations to stop such frauds. But that said, I think you as a client has to remain aware, financial frauds can happen anywhere and not just with demat - banks, your MF distributor, insurance, etc. Make sure to have your email and mobile updated on CDSL, they will notify everytime any transaction happens in your demat.

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@nithin how did today’s meeting with SEBI go… any updation on the new f&o margin policy,will they stop intraday f&o leverage

Can follow this thread.

Nithin, good to see your reply. Surprisingly, I did not saw any circular by SEBI on seeding of client code with demat account. Can you please give link so that it is there in my repertory.
Rajendra Prasad Badoni