What is POA (Power of Attorney)
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.
POA 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 sell of shares.
Without a specific POA, 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.
Here’s a sample POA that you can take a look at before filling out the POA form.