Why is a Power Of Attorney (POA) important for your demat account?
Power of Attorney (POA) used to be a crucial document that enabled brokers to seamlessly manage securities in your Demat account. But with digital evolution and regulatory updates, FYERS has moved to safer and more efficient alternatives. Here's what you need to know.
What is a POA in a demat account?
A Power of Attorney (POA) is a legal document that authorizes a broker to operate your Demat account. It allows brokers to debit securities when you sell or pledge them, eliminating the need for manual approval each time.
Why was POA important?
POA helped streamline demat transactions by providing brokers with pre-approved access to:
- Sell shares from your holdings without requiring TPIN or OTP.
- Pledge securities for margin instantly.
- Fallback processing during system outages or downtime.
It was especially useful in earlier setups where secure digital authorization options were unavailable.
What has replaced POA at FYERS?
DDPI (Demat Debit and Pledge Instruction)
- One-time digital authorization replacing POA.
- No TPIN or OTP needed for sell/pledge orders.
- SEBI-compliant and more secure.
- Recommended for hassle-free operations.
EDIS (Electronic Delivery Instruction Slip)
- Requires TPIN and OTP for every transaction.
- Useful when DDPI is not activated.
- Supports selling, pledging, and mutual fund redemptions.
How to authorize trades using FYERS
If DDPI is activated:
If DDPI is not activated:
- Place your order using EDIS.
- You'll be redirected to the CDSL TPIN flow.
- For detailed steps to sell your holdings via EDIS, refer to this article.
Important: FYERS no longer accepts POA submissions. All Demat transactions now require either DDPI or EDIS authorization.
What If...
| Scenario | Resolution |
|---|
| You forgot your CDSL TPIN | Regenerate it on the CDSL portal. |
| Your mobile number is not updated in CDSL | Submit a modification request via profile section. Refer to this article for the process. |
| EDIS fails during a transaction | Wait and retry. Alternatively, activate DDPI for smoother experience. |
| You don’t want to use TPIN each time | Activate DDPI—it's free and only needs to be done once. |
| You're unsure if DDPI is enabled | Refer to this article for the process. |
Tip: To enable faster and seamless trades, we recommend activating DDPI through FYERS. It’s a quick, free process that enhances your trading experience. Last updated: 05 Aug 2025
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