A Power of Attorney (POA) enables quick, smooth, and efficient functioning of the Demat account. Previously, POA was used to debit securities from your Demat account upon your request to either sell or pledge the securities which you own. In the absence of a POA, you will have to give specific instructions to your broker each time which was practically not feasible to do.
Recently, EDIS has been introduced by the regulators as an alternative for the POA where the clients’ can Buy/Sell the equities/Mutual Funds through the TPIN. To understand more about EDIS, refer to this blog.
But the clients cannot pledge the shares in their Demat for margin benefit to trade in F&O Segment. For this benefit, you will need to sign the POA, scan and send it to firstname.lastname@example.org