Power of attorney (POA) and why is it needed ?
Modified on: Thu, 22 Sep, 2022 at 8:15 PM
A POA is a document that allows a broker to debit shares from the Demat Account and deliver them to the exchange. To prevent misuse of POA, SEBI, through the circular SEBI/HO/MIRSD/DoP/P/CIR/2022/44 introduced Demat Debit and Pledge Instruction (DDPI), which limits debiting shares from a your account only for secondary market transactions, i.e, debiting shares from the client’s Demat account .
Yes, POA should be submitted along with DDPI.
DDPI can be used to debit shares from an your account only for secondary market transactions and Pledging of shares to avail Collateral Based Trading and Margin Trade Funding facility.
POA is still required to debit mutual fund units or shares when a client places a mutual fund redemption order, buy-back order, etc., as the DDPI does not cover these transactions .
What should I do to submit POA/DDPI:
Activation of POA can be done only offline. Follow the steps below to activate POA for your account.
Client Registration Department - POA
TRADEPLUS, C/O Navia Markets Ltd
No 9, Ganga Griha, 4th Floor
Nungambakkam High Road
Chennai - 600034.
If you have sent us your POA to our office, it generally takes us 3 to 4 working day for it to be linked to your account after receiving it. However, in some cases, it could take longer as the POA needs to be franked, which is a process beyond our direct control.
Note: The hard copy of the POA has to be sent because they have to be 'franked' (stamped). Due to which soft copies of the POA isn't accepted.