We’re happy to inform you that you can now operate your FYERS demat account without a POA! The power of attorney document enabled us to credit and debit securities into and out of your demat account. POA is a standard document which was introduced a long time ago in the stockbroking industry to circumvent the tedious offline DIS process for settlements & pledging shares. In recent times, a large number of retail investors’ have become victims of POA misuse and outright scandals by some brokerages who have taken consent to operate clients’ accounts with or without their knowledge. To prevent such rampant malpractices, CDSL introduced a way through which clients can operate their own accounts without having to give authority to a broker to operate it on their behalf. While hardly anyone expressed their reservations to the power instilled in favour of the POA holder (us) since we have transparent & compliant practices, we felt that clients should be in control of their own securities in their demat accounts. So, we implemented CDSL’s E-DIS (Electronic Delivery Instruction Slip) mechanism which enables clients to authorize the depository to debit securities from your demat account directly.
What is E-DIS?
Electronic Delivery Instruction Slip (E-DIS) is a facility which allows the clients to sell their holdings with the help of TPIN (Telephone Personal Identification Number), even if they’ve not submitted their Power Of Attorney (POA). Previously, clients had to submit POA or Physical DIS Slips to place a sell order in CNC but after the introduction of E-DIS, clients neither needed to submit POA nor the Physical DIS slips. All they need to do is enter the 6 digit TPIN they’d received from CDSL to authorize the sell orders for their holdings. This way clients can rest assured about the security of the holdings as they cannot be sold without their authorization.
How does it work?
The step-by-step process for pre-authorization is explained below:
When you place a Sell order in CNC, you’ll get a pop-up as shown in the picture below:
Once you click on ‘Yes’, a pop-up window of CDSL authorization page will appear as displayed below:
If you don’t know the TPIN, you can generate the same by clicking on “Forgot CDSL TPIN” as per the above image. A New CDSL TPIN will be generated and sent to your registered E-mail ID and mobile number by the CDSL.
Click on “Submit” as soon as you receive the TPIN which is sent to your email address and mobile number. You’ll be redirected to the “e-DIS Transaction Verification” page as shown in the display below:
Enter your TPIN and click on “Verify”. After the Authorization is done, you’ll get the below confirmation message.
You can close this window and place the Sell orders in CNC without any hassles.
For FYERS Mobile Application, the procedure for Pre-Authorization will be the same and the display will look similar to the image below:
What does it mean for the existing clients?
The Clients who have already submitted the Power of Attorney (POA) will not be impacted by this in any way.
Whereas the clients who have not submitted the POA will be able to take the delivery of shares (which was not possible without POA, previously) but have to go through the Pre-Authorization process as mentioned above for selling their holdings.
Things to note:
- E-DIS is applicable only for selling the holdings and not for Intraday.
- E-DIS is available only for FYERS Demat Holders
- The facility of E-DIS can only be availed on FYERS Web and FYERS New Mobile Application.
- The authorization of E-DIS is not applicable to the clients who have submitted the POA.
With this initiative, our clients will be more empowered and in control of their own financial assets stored in their respective demat accounts. This adds an additional layer of safety when investing. We hope that this adds value to your trading & investing journey at FYERS. We look forward to introducing more features in the near future. If you don’t yet have an account with us, you can get started here.
Stay tuned, stay safe & happy investing!
Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.