Is POA required to open a demat/trading account?

POSTED BY Mohit Kumar ON September 3, 2013 3:19 pm COMMENTS (8)

I want to open a demat and trading acount. I’ll be using it only for equity investing in delievery mode. Zerodha sent a Power of Attorney form alongwith the usual registration and KYC forms. Is is “mandatory” to sign the POA? What are its implications if I don’t sign or if I sign? Can I open a demat/trading account without signing the POA? I’ll only be using web-based platform for investing in shares. I plan to buy shares for mid to long-term like buying today and selling it 2-3 months later or beyond that.

PS: I’m a new investor (I have never invested/traded before).

8 replies on this article “Is POA required to open a demat/trading account?”

  1. Shreevardhan says:

    Dear sirs,
    Can we not operate our demat account through speed-e service instead of signing POA with broker?

    1. You can do that. Check with NSDL on this

  2. Dear Mohit, all the necessary legal work ‘ll be done by your broker.

    thanks

    Ashal

  3. Mohit Kumar says:

    Dear Ashal, thanks for your answers. But do I require a notary’s seal also?

  4. Dear Mohit, please read the link shared by you carefully. it’s the debit leg of your transaction (sell order) which requires POA.

    Thanks

    Ashal

  5. Mohit Kumar says:

    But this page says that POA is required for demat account: http://www.zerodha.com/z-connect/blog/view/poa-power-of-attorney-for-your-demat-account

    Do I need 2 witnesses and a notary seal to sign that or I just sign that and send the POA form to that.

  6. Dear Mohit, POA is meant for trading account. For plain demat account there is no POA required. To be able to buy & sell, you need Trading account so POA is a must.

    Thanks

    Ashal

    1. Manu says:

      Ashal, POA is only used for demat account and not for trading account.

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