What is (Power of Attorney) POA?

A Power of Attorney (POA) is a legal document that authorizes the broker to debit shares from the client’s demat account for delivery to the exchange after the clients sell it. This authorization simplifies the selling process, as the broker can handle the transaction without requiring the client’s manual approval each time. 

Without a POA, you need to approve each sale manually using a digital delivery instruction slip (eDIS) or submit a physical DIS at an Arihant investment center. 

However, POA does not allow brokers to transfer funds from the client's bank account or misuse the account, its scope is limited and regulated.

In a circular issued on October 6, 2022, the SEBI announced that the traditional Power of Attorney (POA) used in broker-client arrangements within the stock market would be replaced by a new document called “Demat Debit and Pledge Instructions” (DDPI). 

That’s why Arihant Capital has discontinued the collection of POA from clients, replacing it with the Demat Debit and Pledge Instruction (DDPI). For clients who had already submitted a POA earlier, no changes are required.

The existing authorization remains valid. Submitting the DDPI is completely optional. Clients who prefer not to opt for DDPI can continue authorizing the debit of their securities using the CDSL TPIN method for each transaction.