InvestorQ : Do I need to give power of attorney for my demat account?
Abhi Yadav made post

Do I need to give power of attorney for my demat account?

Aashna Tripathi answered.
3 years ago
Most trading cum demat forms contain an inbuilt clause to give power of attorney to the broker to debit and credit your demat account. Be clear that this can be misused and you must be aware that such a POA has been signed. There is no compulsion on you to sign if you are willing to take on the responsibility to ensure that DIS slips are submitted on time to your broker. Please don’t leave signed DIS slips with your broker. That is not a smart choice at all.

Some brokers with POA also include clauses where they don’t need to issue debit instruction slips (DIS) to the account holder. There are even clauses wherein the account holders are not entitled to operate the account once they have given the POA. There is a difference between a standing instruction to credit (which is ok to sign) and a DIS. Use this facility very intelligently. With most reputed brokers, giving POA is a normal and routine practice, but it is important you know your rights and obligations.

The above agreement has to be executed on a stamp paper (only then it is valid). Remember to go through the clauses in detail before executing the POA. You can retain a copy of the signed POA with your for records. Most brokers, nowadays also make the copy of stamped and approved POA available for you to download online through your trading login.