Online Trading- Importance of Power of Attorney 
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    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • Last Update:09 Nov,2017
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  • BSE SENSEX
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    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • Last Update:09 Nov,2017
  • Show All
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When we open a Demat account with an online broker, it is important to sign a POA (Power of Attorney). But before we sign a POA, let us understand its importance in the trading world.

When you buy shares through an online or offline account, post purchasing the shares, they are transferred to your Demat account and therefore we do not need a POA for buying the shares.

However, the POA is needed when you sell the shares online as this document authorises us to carry out the obligation on your behalf.

What are the different types of POA?

There are two types of POA i.e., Specific POA or Limited POA and General POA. Specific POA states the limited range of powers of the POA whereas General POA is generic.

What type of POA is given to Karvy?

The POA provided to Karvy is specific and is for the trade settlements, and is limited to the usage of POA for transfer of securities for margin purposes or for the settlement of trades done through a recognized stock exchange.

When you want to sell the shares, you have two options

  • By using Delivery Instruction Slip(DIS), fill up relevant details & give it to your broker, who will then debit the shares from the dematerialized account. This is almost rarely done nowadays and is almost extinct.
  • Authorize the broker to debit the shares directly after you sell the shares in the dematerialized account. When you sell shares, the broker will debit them directly since they've your Power Of Attorney (POA) to do this.

Why is POA Mandatory?

POA is mandatory for the online selling of shares. It is required for smooth operation of the Demat account.

What is the scope of POA?

The scope of POA is limited to debiting the account for taking shares, to honour your payment obligations for the transaction executed online by the customers

Is nomination required to be witnessed?

Yes, the nomination needs to be witnessed by 2 nominees with their respective signatures.

Will the account be activated without POA Documents?

Yes, the account will be activated without the POA. However, it is not possible to sell the shares online without the submission of POA.

When should be the POA submitted?

The POA should be submitted within 1 week, post account opening.

Watch the video for complete assistance

Please sign the POA document and ensure that it should reach us within 7 days, post account opening. You can also contact us at our office address:

CRD Department,
Karvy Stock Broking Limited,
2nd floor Karvy Selenium, Tower B,
Plot 31-32, Financial District,
Gachibowli, Hyderabad – 500 032.

If you have still not received your POA, kindly reach us at service@karvy.com or call us on 1800-419-8283

Download Sample POA
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