Is power of attorney compulsory for demat account?

Absolutely NOT!. It is not compulsory to sign Power Of Attorney and no broker can deny services to you if you wish not to give Power Of Attorney. Earlier to year 2010, Stock Brokers used to compel their customers to sign POA and even refused to open the account if they didn’t sign.

Why do brokers ask for POA?

In online trading, a PoA is required by the broker to meet the obligation of delivering the shares in T+2 days, when the customer sells them online. PoA is mandatory by all the brokers if you are selling stocks with them online. The PoA can be revoked anytime by the customer.

Is it compulsory to give POA to Angel Broking?

Angel Broking POA is mandatory in nature. Thus, it is important to give complete authority to your stockbroker- Angel Broking to debit your shares during the transaction while making a trade.

Is it safe to give PoA to stock broker?

PoA is merely an option available to the client for instructinghis broker or depository participant to facilitate the delivery of shares and pay-in/pay-out of funds etc. “No stock broker or depository participant shall deny services to the client if the client refuses to execute a PoA in their favour, it had added.

Can I do intraday trading without PoA?

Can I do Intraday Trading without POA? Yes, you may do intraday trading and even futures and options without a POA. So, power of attorney is not a mandatory document to be signed, nd it doesn’t come into the picture when you buy shares.

How can I sell shares without PoA?

In case you are not able to send the physical copy of the POA, and still need to sell your stocks, you may give us an electronic instruction to debit the shares from your demat account and transfer those shares to our pool account for payin to the Exchange. You can then sell the shares from the trading terminal.

Is POA mandatory for online trading?

Power of Attorney is not mandatory. If you do not give PoA to anyone, you are the sole operator of your demat account. This is the safest way. Buy this option 1 is not practical in online trading.

How can I sell shares without POA?

Is PoA mandatory in stock market?

So, power of attorney is not a mandatory document to be signed, nd it doesn’t come into the picture when you buy shares. It might only be required, when you try to sell those shares from your demat account or pledge them margins in futures and options trading.

Is PoA required for transfer of shares?

The Securities and Exchange Board of India (SEBI) has prohibited brokers from using power of attorney (PoA) to transfer clients’ shares in equity markets. “Holding of a PoA by trading member/clearing member will not to be considered as equivalent to the collection of margin,” SEBI said in its circular.

Can I sell my shares without POA?

At Upstox, the e-DIS (electronic-Delivery Instruction Slip) facility enables you to sell your shares directly without having to courier a physical copy of the POA. Once you click ‘SELL’, you’ll be prompted to give your permission to sell your shares. An OTP will be sent to your registered phone number and Email ID.

Is POA mandatory for buyback?

For example, to meet exchange pay-in obligation, margin requirement, apply in buyback, rights etc. POA is not mandatory. However,it is advisable to provide POA for seamless transaction processing when you sell shares, apply for buyback, rights etc.

What is Poa for Demat account to broker?

Power of Attorney (POA) for Demat Account to the broker is a legal document. It gives limited or full legal authority to the broker to operate your demat account as per the agreed terms in PoA document signed by you. Almost all investor who opens the Trading and Demat account for delivery based trading, gives limited POA to the broker.

Should I give a power of attorney to my broker?

By giving PoA to the broker, you are allowing him to withdraw the shares from your demat account on your behalf. Power of Attorney is not mandatory. It is your choice to give it or not.

What are the dangers of power of attorney for Demat account?

It is the most dangerous and highly abused Power Of Attorney and hence one should never execute this type of POA, not only for Demat account but also for any other things in life unless it is warranted. With this, the POA holder (Stock Broker) can perform all the activities that the original person (the Client) can do.

How to withdraw stocks from Demat account?

Give power of attorney to your broker for automatic withdraw the share when you sell them. By giving PoA to the broker, you are allowing him to withdraw the shares from your demat account on your behalf. Power of Attorney is not mandatory. It is your choice to give it or not. No broker can force you to give PoA.