Have you opened a Demat account with Zerodha or thinking of initiating trade by becoming its member? In all the studies you go through, are you wondering about the Zerodha POA?
Well! That’s Common
Zerodha being the leading discount broker of the country grab many investors towards its trading platform, but before getting into the activity, it is important to know about the general information regarding the account opening and other necessities.
Here we are with good information of POA that every investor must be aware of while opening a Demat account with Zerodha.
Zerodha Power of Attorney
In the traditional time, when the trading was done offline the delivery instructions slip was sent to the broker office. On receiving the slip, the broker debit the Demat account.
Although, this method continued for long, but have some issues like:
It was costly as the slips were transferred physically that includes courier and transport charges.
In case the slip is not reached on time, there was a high risk of auction and penalty.
With the growing advancement, the whole process turned into online. This what brings the traditional method to end and introduces the smooth process of the Demat account.
PoA or Power of Attorney is a document that authorizes the broker to debit a share from your DEMAT account whenever a share is sold.
In simple terms, Zerodha PoA is a legal document that gives the limited legal rights to the broker to operate the Demat Account.
Although it is not compulsory but is good to have to bring smoothness in the operation of the Demat account. Also, it is mandatory to submit the PoA to Zerodha especially if you are dealing with stocks online.
Also, PoA helps in meeting the obligation of delivering the shares in T+2 days when customers sell them online.
On the final submission of the consent, one would be able to sell holdings on Zerodha KITE from the following trading day.
Zerodha POA Status
When one gets involved in trading in the stock market, buying and selling of stocks become common.
While trading when one buys shares (online or offline) then the shares get transferred to the Demat account automatically.
On the other hand, when you sell the share, it goes out of your Demat account. At that time, PoA is required, if the whole process is done online.
According to the SEBI Guidelines, the client needs to give the specific POA that provides the broker rights related to the transfer of securities to a stock exchange when the shares are sold or pledge of shares collateral securities with the broker for the limited time.
Thus, the broker cannot stop or interfere with the selling operation.
It is good to read the document carefully before signing it and proceed further by submitting a limited Zerodha POA.
Zerodha POA Form
POA is the authorization of using your account to another person, here broker (Zerodha). But since Zerodha POA is used only in case of Demat Account where you need to sign a limited POA offering.
With POA the customer gives the right to its respective broker to access their Demat Account. This helps the broker to release the share on selling.
Zerodha POA Form Download
If you are looking for the POA form then you can download the same by clicking on the link
Once you download the form, fill the required field, sign it and send it via courier to the Zerodha office at the address mentioned below.
The other option or say alternative for POA is the online delivery instruction slip. You can find the option to submit it in Console by clicking on Profile and then on Demat.
Zerodha POA Form Filling
The form you downloaded or the one that you received from your sales manager, is pre-filled. Only you need to sign a few boxes, ‘F13’ and ‘F14’.
In case, you didn’t receive the pre-filled form, then you can place a request for generating the pre-filled form to your sales manager.
Make sure that you use only blue or black ink ball pen to sign the POA.
Zerodha POA Address
All the Zerodha form including Zerodha POA is sent to its Banglore address:
Zerodha H.O No. 153/154 4th Cross Dollars Colony, Near Clarence Public School, Jaya Prakash Narayana Nagar, Phase IV, Banglore (560078).
You can send the POA via registered post, simple post, simple post or courier.
Also, you can drop the form at any of the nearby branch offices that further send it to the head office in Banglore for further processing.
Thus Zerodha POA gives you the right to smoothen your online trading with your Demat Account.
Although one can start trading as soon as you receive the client-id and Zerodha password it is always better to send to the POA and nomination documents to the head office to initiate the selling of stocks.
In case you are looking to get started with your stock market investments, let us assist you in taking the next steps ahead.
Just fill in a few basic details here to get started:
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