What happens if I don’t give the Power of Attorney (POA) of my Demat account?
Earlier, in the absence of a POA, a client would be able to sell or pledge shares which he/she owns only upon physically submitting the Delivery Instruction Slips (DIS) to the broker. This was both inconvenient and time consuming for everyone. For an active investor/trader, sending physical instruction slips each time he or she wants to do a transaction is difficult and expensive too. Please note that it is a specific POA, it restricts the nature of transactions that can be executed by the POA holder to the Specific account (Not General POA). Hence, you will only be giving authority to the POA holder for the purpose of trade settlements. In any case, the client shall receive all transaction-related information via contract notes, statement of accounts etc. on a timely basis. This helps the client to stay in touch with the activities that happen in the respective Demat account.
However, this process was further simplified with the introduction of Electronic Delivery Instruction Slip (EDIS) wherein the clients can sell their holdings with the help of TPIN without submitting the POA (refer to this blog).
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 ...
How to submit the Power Of Attorney (POA) of my Demat account to FYERS?
You will have to Download, print, fill, sign & send the Power of Attorney to our office address. Once the forms are received, your POA will be activated in 7 working days. Our office address is as below: Fyers Securities Private Limited. No. 225, 1st ...
Can I open Non- POA Demat account?
Yes, you can open Demat account without providing POA where you’ll have to Buy & Sell the shares through E-DIS. You can go through this blog Demat Account Without POA for more information on E-DIS and how it is different from the Demat with POA. We ...
Why can’t I take delivery of shares if I have not opened a Demat account?
Whenever you buy shares and decide to hold it for a week, a month, or years together then shares bought are deposited in Demat account in dematerialised form, as Demat account holds shares and securities in electronic custody. If you don’t have Demat ...
Why don’t you accept NRO account?
That isn't true! You as an NRI can link your NRO account to your FYERS account. To know more about how to open your NRI account. refer to this article.