Why POA is required
POA stands for Power Of Attorney.
It is a limited level of permission that you can give to the broker so that they can process your transactions with the exchange in a smooth and seamless manner.
Power of Attorney is required so that the broker can debit shares from your demat account and submit those to the exchange. It is a permission from the client that enables the broker to process selling of shares.
Without a specific Power of Attorney, the broker will not be able to debit shares from your demat account when you wish to sell your shares. Since Upstox is an online broker, a POA is required during account opening in order to keep your information safe and secure.
At Upstox, you have the e-DIS (electronic-Delivery Instruction Slip) facility with which you can directly sell your shares online without having to courier a physical copy of the POA. Once you click SELL, you'll be prompted to give your permission to sell your shares. An OTP will be sent to your registered phone number and email ID which ensures that your financial information remains secure.
e-DIS facility is available only on Upstox platforms (Web,Android,iOS) and not on third-party platforms yet. Also, e-DIS is applicable for delivery trades and not intraday. You can sell up to Rs. 75 lakhs worth of stocks using the e-DIS.
Here's a sample POA that you can take a look at before filling out the form.