Friends, if you have a great deal of interest in the stock market, you should be aware that in order to trade in the stock market, you must first open a Demat Account.
Any discount broker, such as Zerodha, Upstox, or IIFL, can help you open a Demat account swiftly.
All you want to know about POA
When you open a Demat account with any broker, you will almost always be asked to submit a POA. The term “power of attorney” refers to the ability to act on behalf of another person.
You’re probably wondering why you’d let your broker manage your Demat account in the first place.
However, you may not be aware that when trading in the stock market, you will require two types of accounts: a trading account and a Demat account.
When you acquire shares on the stock market with a trading account, they are added to your Demat account as shareholdings after two days of purchasing the same.
Suppose whenever you want to sell your held shares in the market, then at such time you have to transfer the shares from your Demat Account to Trading Account and because of this, you have to give POA to your broker.
Is Giving POA to Your Broker in Demat Account is Safe?
By the way, whether or not to grant Power of Attorney to your broker is entirely up to you, because if you do not want to give POA to your broker, your broker cannot force you to do so.
However, if you want to trade with your Demat Account without any further hassles, you can quickly give your broker the authority of POA by filling out a simple form.
Many people believe that if they grant their broker POA authority, then their account may have to face some security issues, however, this is totally false.
If your broker has a strong reputation in the market then you may rest assured that the POA linked with your Demat account will never be misused.
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POA in Upstox
Friends, if you handle your Demat account from a broker named Upstox, then there is very good news for you in the case of POA, after getting you open Demat account on other platforms, you have to send the POA form to their head office. But Upstox has decided to make this facility online like its other facilities.
In fact, if you had already opened an account with Upstox, you may remember that after printing out the POA form, you had to sign it and deliver it to Upstox’s head office.
In such a case, Upstox customers have grown up believing that because they are now performing all of their work online, the process of filling out the POA form and submitting it to the Upstox head office has become burdensome, and as a result, Upstox has created an online POA facility.
Upstox is the first broker to implement an electronic delivery instruction slip (e-DIS) that allows you to sell your stocks in real-time without giving us a physical slip or a power of attorney.
They have implemented a secure OTP-based authentication to facilitate this action.
From now on, you can open an account and transact end-to-end without sending a single piece of paper via courier.
To begin with, you’d now see all of your shares in the Holdings tab.
Previously, this may not have been there since we don’t have your PoA. Now, you’ll see all of your equity holdings on both the mobile and web Upstox Pro app.
Next, when you click sell, you’ll be prompted with a window that asks your permission to sell your shares online using the e-DIS facility. You can confirm your transaction right away!
Just make sure you enter the right OTP that is sent to your registered phone number and email ID.
Benefits of POA in Upstox
(1) Now you can sell up to 75 lakhs using the E-DIS facility.
(2) you can only use E-DIS for delivery only hence this facility is not available for Intraday trading.
(3) e-DIS is currently available only on the Upstox platforms (Web, Android, iOS) and not on third-party platforms yet.
Final Conclusion on POA in Upstox
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