The Role of Power of Attorney in Demat Account Management

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

Understanding the necessity of a Power of Attorney (POA) for your Demat account is crucial. A POA enables the efficient management of your account, particularly for debiting securities when you wish to sell or pledge them.

Key Points on POA:

  • A POA allows seamless transactions without requiring individual instructions for each operation.

  • In the absence of a POA, managing transactions would be less feasible.

Introduction of the Electronic Delivery Instruction Slip (EDIS):

  • EDIS offers an alternative to the POA and facilitates transactions via a TPIN.

  • It enables the selling/buying of Equities/Mutual Funds and pledging of shares for margin benefits in F&O segments.

For a deeper understanding of EDIS and its benefits, please refer to this comprehensive blog.

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