Open Free Demat Account Open Free Demat Account
MENUMENU
  • Stock Broker Reviews
    • Discount Brokers
      • Zerodha Review - Brokerage,Services
      • Upstox Review – Brokerage,Services
      • StoxKart Review - Brokerage ,Services
      • 5 paisa Review
      • Fyers Review
      • Samco review
      • Trade Smart Online Review
    • Full Service Brokers
      • ICICI Direct Review
      • Angel Broking Review
      • ShareKhan Review
      • HDFC Securities Review
      • Kotak Securities Review
      • Motilal Oswal Review
  • Open Demat Account
        • Open Demat Online
          • Open Zerodha Demat Account
          • Open Upstox Demat Account
          • Open Angel Broking demat Account
          • Open StoxKart demat account
          • Open Choice Broking demat Account
          • Open 5 Paisa Account
          • Open Fyers Account
        • Open Demat Offline
          • Open HDFC Securities Account
          • Open SBI Demat Account in 2022
          • Open Angel Broking demat Account
          • Open Edelweiss Account
          • Open Kotak Securities Account
          • Open Icici Direct Account
  • Broker Comparison
    • Compare Brokers
      • Zerodha vs Upstox Review 2023 – Which is Best demat account in India
      • Angel Broking vs ShareKhan
      • Zerodha vs IciciDirect
      • Zerodha vs 5 Paisa Comparison
  • Resources
        • Share Market Resources
          • 8 Best Stock Market Apps in India
          • Stock Market Timings in India
          • NSE Holidays 2020 – Stock market Holidays
          • 8 Best Stock Market Websites in India
        • Stock Market Beginners lessons
  • Trading Tools
    • Open High Low Scanner
    • Long Buildup Short buildup
  • IPO
    • IPO GUIDE
      • What is IPO and Detailed guide on an IPO
      • How to buy IPO in Zerodha
      • How to Apply for IPO using SBI
    • UPCOMING IPO
      • Rossari Biotech IPO Details
MENUMENU
  • Stock Broker Reviews
    • Discount Brokers
      • Zerodha Review - Brokerage,Services
      • Upstox Review – Brokerage,Services
      • StoxKart Review - Brokerage ,Services
      • 5 paisa Review
      • Fyers Review
      • Samco review
      • Trade Smart Online Review
    • Full Service Brokers
      • ICICI Direct Review
      • Angel Broking Review
      • ShareKhan Review
      • HDFC Securities Review
      • Kotak Securities Review
      • Motilal Oswal Review
  • Open Demat Account
        • Open Demat Online
          • Open Zerodha Demat Account
          • Open Upstox Demat Account
          • Open Angel Broking demat Account
          • Open StoxKart demat account
          • Open Choice Broking demat Account
          • Open 5 Paisa Account
          • Open Fyers Account
        • Open Demat Offline
          • Open HDFC Securities Account
          • Open SBI Demat Account in 2022
          • Open Angel Broking demat Account
          • Open Edelweiss Account
          • Open Kotak Securities Account
          • Open Icici Direct Account
  • Broker Comparison
    • Compare Brokers
      • Zerodha vs Upstox Review 2023 – Which is Best demat account in India
      • Angel Broking vs ShareKhan
      • Zerodha vs IciciDirect
      • Zerodha vs 5 Paisa Comparison
  • Resources
        • Share Market Resources
          • 8 Best Stock Market Apps in India
          • Stock Market Timings in India
          • NSE Holidays 2020 – Stock market Holidays
          • 8 Best Stock Market Websites in India
        • Stock Market Beginners lessons
  • Trading Tools
    • Open High Low Scanner
    • Long Buildup Short buildup
  • IPO
    • IPO GUIDE
      • What is IPO and Detailed guide on an IPO
      • How to buy IPO in Zerodha
      • How to Apply for IPO using SBI
    • UPCOMING IPO
      • Rossari Biotech IPO Details
Open Demat Account

What is Power of attorney (POA)

July 10, 20190 Comment263

What is Power of Attorney(POA)?

Table of Contents

    • What is Power of Attorney(POA)?
  • What is POA?
  • Different types of POA?
  • Uses of POA?
  • FAQs

Today we will learn about the Power of Attorney, popularly known as POA. Power of attorney is required when you want to sell share from your Demat account and the shares will go out of your Demat account. You have to sign a Power of Attorney form when you open a Demat account with an online broker like Zerodha or Upstox 

Zerodha Account Opening

POA was introduced for the smooth operation of the Demat account. With the help of POA, whenever you sell shares the broker uses it to debit the shares from your Demat account and provide it to the exchange.

By rule, to remove any stock from your Demat account, your broker needs written permission from you. But this is not possible every day as you will be buying and selling shares frequently. Here comes the concept of POA.

POA is also used to debit shares when you intend to pledge them to get collateral margin for trading futures and options.

Upstox Account Opening

What is POA?

POA is a legal authority provided to another person through a legal document to operate your Demat account as per the instructions contained. Power of attorney is not compulsory, but it is required for the smooth operation of your Demat account. 

Different types of POA?

There are two types of POA,

  1. Specific/Limited and 
  2. General POA. 

Specific POA is the limited range of powers of the POA whereas General POA is generic. The POA given to Zerodha is specific and mentions the various powers on the POA. When signing the POA, you have to ensure that it is in the name of a SEBI registered stockbroker.

Uses of POA?

There is no requirement of the POA if you trade in futures and options or intraday equity. Whenever you sell shares from your Demat account or want to pledge them for getting margin for trading F&O, the POA is used to debit the shares from your Demat account. This ensures that the entire process is online and less inconvenient.

FAQs

Is power of attorney required for Zerodha?

A Power of Attorney (PoA) for Demat Account is a legal document that gives limited legal authority to the Zerodha to operate your demat account. PoA is mandatory by all the brokers if you are selling stocks with them online.

Can I trade in Zerodha without POA?

If you have not submitted the POA, you will be able to place delivery sell instructions by using the CDSL TPIN.

  • can broker misuse POA
  • is poa mandatory
  • what is POA
  • what is power of attorney
Share

Related Articles

Open Choice Broking Account
Open Demat Account

Open Choice Broking Demat Account Online Fast [in 7 Mins]

May 9, 2020
Open SBI Demat Account
Open Demat Account

Open SBI Demat Account in 2022

April 23, 2020

What is Demat Account – How to open demat account – What are the benefits of opening demat account AND MORE

July 9, 2019
What is demat account and trading account
Open Demat AccountStock Market Beginners lessons

What is Demat Account and Trading Account

January 12, 2019

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search any Post

Upstox 2022 Offers

Upstox-demat-account-opening

Angel Broking Demat Offer

angel broking account

Zerodha Offers – Open Zerodha Account

Zerodha account opening

New on Blog!

  • Upstox Free Demat account Offers – Zero brokerage delivery
  • Nazara Technologies IPO
  • Home First Finance IPO Review and Details
  • Indigo Paints IPO Details
  • Zerodha Charges In 2022 – AMC, DP, and Brokerage Charges
  • Zerodha Customer Care Number, Email IDs & Support
  • Upstox Customer Care Number, Email IDs & Support
  • Upstox Account Opening Documents
  • Zerodha Account Opening Documents
  • Upstox Charges – Know the detailed Upstox Charges
  • Upstox Pro Trading Platform
  • Is Upstox Safe for Long Term Investment [Answered]
  • Sensibull Review-Best Options Trading Platform
  • Discount Brokers in India
  • Angel Broking IPO Review & Details

New Posts

  • Upstox Free Demat account Offers – Zero brokerage delivery
  • Nazara Technologies IPO
  • Home First Finance IPO Review and Details
  • Indigo Paints IPO Details
  • Zerodha Charges In 2022 – AMC, DP, and Brokerage Charges
© Copyright 2023 Demataccountopen.com