But can you open your demat account without POA? Is the POA mandatory? Why is POA essential? Let’s answer these questions.
First off, you also have an option whether to sign a POA form or not. It’s just to make the work of traders easy. So, we will be talking about the Stoxkart POA in this article, though every broking company asks if it’s a client to open a demat account.
Let’s start with the meaning of POA.
Stoxkart POA ( Power of Attorney) is a legal document in which a company asks it’s investors to sign the POA form that gives the command to the broker to run the demat account of their clients.
At the time of giving the Stoxkart POA form to your broker, you are giving the full authority to your broker to withdraw the shares of your demat account to sell in your absence.
Stoxkart cannot force you to sign the Stoxkart POA form. It is totally up to you.
We will now jump onto the purpose of the Stoxkart POA form :
Stoxkart POA Form
Let us try to understand the basics terms related to the Stoxkart POA form to give you a clear picture.
For equity trading, You need to open :
The trading account will be used to buy or sell your shares. And the demat account will be used to transfer the shares in a digital/electronic way.
If you buy the shares for you, Stoxkart will use the money from your demat account and then purchase the shares from the sellers.
If you want to sell the shares by today only, you have to transfer the broker’s account the very next working day to the buyer.
And if you fail to move, then you have to pay the penalty fees because of the transaction problem settlement.
So therefore, to avoid these penalty fees that come with the physical transfer of the shares, most traders or investors opt for the Stoxkart POA form.
How To Fill Stoxkart POA Form
If you want to fill the Stoxkart POA form, you need to download it from the Stoxkart’s official website first.
Under the support section on the top, you will see the downloads, and under the account modification form, you will get the Power of attorney(POA) form and download it.
After filling the form providing all the details correctly, you have to send that form to Stoxkart’s email address.
When you fill the Stoxkarts POA form, you have to fill in the first/ sole holder’s name and signatures.
And in the same way, you have to sign the forms with the second and third holders.
After this, you need to get the signatures of your two witnesses with their name, address. Witnesses can be your friends, family members, or your relatives.
The above information will help you to fill the POA form efficiently and correctly.
Stoxkart POA Form Online – Download
You need to download the POA form from the official Stoxkart’s website in the support section, under the Account Modifications Forms.
Carefully fill in all the details. The compulsory fields need to be adequately filled; otherwise, your POA form can get on hold.
The signature, address, and name of the witness are significant and mandatory fields to fill.
In the end, we can say that the Stoxkart POA form is available on the official website through which you can download and fill in the correct details and send them back to their email address.
Although POA is not a binding legal document, it helps the traders invest in their stocks in an effortless way, mostly selling them. So, it’s always a safe side to sign the Stoxkart POA form registered with the SEBI.
Thinking to open a Demat Account? Please refer to the below form