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.
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.
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.
POA is mandatory for the online selling of shares. It is required for smooth operation of the Demat account.
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
Yes, the nomination needs to be witnessed by 2 nominees with their respective signatures.
Yes, the account will be activated without the POA. However, it is not possible to sell the shares online without the submission of POA.
The POA should be submitted within 1 week, post account opening.
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:
Plot No. 31 - 32, Karvy Millenium (PEB Building), 2nd floor, Financial District |Gachibowli | Hyderabad - 500032 | Telangana
If you have still not received your POA, kindly reach us at firstname.lastname@example.org or call us on 1800-419-8283Download Sample POA