Why is a Power Of Attorney (POA) important for your demat account?

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, we have 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 authorises 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 authorisation options were unavailable.

What has replaced POA at FYERS?

DDPI (Demat Debit and Pledge Instruction)

  • One-time digital authorisation 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.

Steps to authorise trades using FYERS

If DDPI is activated:

  • Place your sell or pledge order.

  • No TPIN or OTP is needed; authorisation is automatic.

If DDPI is not activated:

  1. Place your order using EDIS.
  2. You'll be redirected to the CDSL TPIN flow.
  3. For detailed steps to sell your holdings via EDIS, refer to this article.
We no longer accept POA submissions. All Demat transactions now require either DDPI or EDIS authorisation.

What If...

ScenarioSolution
You forgot your CDSL TPINRegenerate it on the CDSL portal.
Your mobile number is not updated in CDSLSubmit a modification request via the profile section. Refer to this article for the process.
EDIS fails during a transactionWait and retry. Alternatively, activate DDPI for a smoother experience.
You don’t want to use TPIN each timeActivate DDPI; it's free and only needs to be done once.
You're unsure if DDPI is enabledRefer to this article for the process.

Last updated: 02 Jan 2026