Is Power of Attorney required for a Demat Account

Why is a Power of Attorney (POA) needed for a Demat account?

A Power of Attorney (POA) enables quick, smooth, and efficient functioning of the Demat account. Previously, POA was used to debit securities from your Demat account upon your request to either sell or pledge the securities which you own. In the absence of a POA, you will have to give specific instructions to your broker each time which was practically not feasible to do.

Recently, EDIS has been introduced by the regulators as an alternative for the POA where you can Buy/Sell the Equities/Mutual Funds through the TPIN. You can also pledge the shares in your Demat for margin benefit to trade in F&O Segment using the EDIS. To understand more about EDIS, refer to this blog.


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