Why do I have to sign a POA to open a Demat account with Choice Broking?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

Power of Attorney (POA) authorizes the broker to debit the shares from your Demat account whenever you sell the shares and transfer it to the Exchange to meet the pay-in obligation. If you do not sign and submit the POA, you are not able to see or sell the shares in your Demat account. 

Earlier the POA was required to be couriered to the broker office on completion of the registration. However, with the introduction of Electronic Delivery Instruction Slip (eDIS), it is now not mandatory to submit a POA to Choice Broking. The eDIS enables the investors to sell their shares using TPIN by way of online authorization. 

It is important to note that the eDIS facility is currently available only for CDSL Demat account holders. See the below video to know how to sell your shares without POA.





Add a public comment...