Comment on POA - Power of Attorney for your Demat account

Venu commented on 05 Jan 2016, 07:51 PM

Hi Soumya,
Although PoA is a voluntary document, most online brokers collect it for operational convenience. There are times when stocks hit circuit and taking delivery of such shares is inevitable. Once you take delivery, you’ll have to sell it and to meet the payin obligation arising out of such sale, we will need to debit share from your account for which PoA is required failing which there’s a risk of auction.

The alternate way for this is to map an existing demat account of your mother to your trading account and trade intraday. If there’s any delivery, we’ll transfer shares to the existing demat account. You’ll need to open only a trading account at Zerodha.

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