Why is a Power Of Attorney (POA) important for your demat account?
Managing your Demat account effectively is essential for smooth trading and investing. A Power of Attorney (POA) simplifies how your securities are debited when you sell or pledge them through FYERS. But with new digital options available, is it still necessary?
What is a POA and why is it used?
A Power of Attorney (POA) authorises FYERS to debit securities directly from your Demat account. This facilitates quick settlement during selling, pledging, or other account-related operations.
Benefits of having a POA:
- Enables seamless transactions without needing your authorisation for every sell or pledge.
- Saves time by avoiding the need for manual delivery instructions.
- Essential for certain types of pledging and early margin benefits.
What if I don’t submit a POA?
FYERS supports transactions even without a POA through the Electronic Delivery Instruction Slip (EDIS) system. However, this requires extra steps and user authentication via TPIN.
What is EDIS and how does it work?
EDIS (Electronic Delivery Instruction Slip) is a secure alternative that allows you to authorize the sale or pledge of securities without a POA.
Key features of EDIS:
- Requires a CDSL TPIN for each authorization.
- Supports selling equities, mutual funds, and pledging stocks for F&O margin.
- Offers enhanced user control and compliance flexibility.
Tip: EDIS is particularly useful for users who prefer not to issue a POA for security or personal reasons.
How to use FYERS without a POA
- Ensure your mobile number is linked to your CDSL account.
- Initiate a sell or pledge request on FYERS.
- Complete EDIS authorization via CDSL TPIN and OTP.
- Proceed with your trade after successful verification.
What If?
| Scenario | Solution |
|---|
| You forgot your CDSL TPIN | You can regenerate it via the CDSL portal or FYERS account settings. |
| Your mobile number is not updated in CDSL | Submit a modification request to update your mobile number. |
| EDIS fails during a transaction | Retry after some time or check for CDSL system downtime. You can also use POA if available. |
For an in-depth comparison and guidance, check out this comprehensive blog.
S Demat EDIS, CDSL TPIN
Last updated: 01 Jul 2025
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