Giving Power of attorney to brokers

[tradingnoob]

I am considering opening trading+demat account with a discount broker, and have been given a PoA form to fill. What are the advantages and disadvantages of giving vs not giving the PoA to brokers? I am new to trading so please, someone explain in simple words. Thank you.

 

[tradingnoob]

Folks, any thoughts on this please? As a newbie all this can be very confusing and intimidating. Thanks in advance.

 

[deba72]

If you don't give POA you will have to physically hand them over DP delivery slips each time you sell something from your DP. Are you Ok with that ? If not then you don't have any option other than giving POA,especially if you are a regular trader.

 

[tradingnoob]

Thanks for the answers.

Are the discount brokers (Zerodha, RKSV, etc.) in the habit of misusing the PoA? If yes, how common is the practice and what kind of things do they do?

If we want to modify the PoA, is it possible and how?

 

[deba72]

Theoretically misuse of POA by brokers are possible and not uncommon either but then you always have redressal mechanism set up by exchanges and SEBI. And for all practical purposes, you just can't operate daily trading without POA. Its only possible if you are trading once in a blue moon and ready to take the pain to handover DP slips physically to your broker everytime you trade.