Multiple Trading Accounts with one NSDL Demat?


that's my see....we should....if we give POA to the second broker...

point is demat account is not held with the broker....its held with NSDL....

if the broker is holding POA on the account....he can do everything on a NSDL account opened by other broker, that he can do on an account opened by himself. Of course, the depository should be the same as being used by himself (CDSL/NSDL....or maybe not).

Any broker on board.....would you shed light on why brokers dont allow margin on depository account opened through other brokers (but with same depository as themselves), even though a POA is given to them?



Well-Known Member

I am sure we are not (in general) giving POA to our broker with whom we got our trading account (hereafter I write him as TBroker). We are giving POA only to DP (DP may be the same person, if we open demat cum trading account with Broker X.

There are few cases where we can appoint our TBroker as POA. (Its just for the information)

I just looked at the application form which I filled when I opened my demat cum trading account). There were no columns to appoint POA in TRADING ACCOUNT OPENING APPLICATION FORM. I found that only in DEMAT ACCOUNT OPENING FORM.

Ok, what POA can do with his power?

To instruct the DP to debit securities to the said account and/or transfer securities from the said account to any other account, to the extent of shares sold through Broker X for Pay-in obligations as well as for margins towards any stock exchange both in cash and derivatives segments.

Now, we can see the reason "Why can't two brokers hold POA on one Demat? Why should a user need to open multiple Demat Accounts?"

Our POAs power is limited to debit/transfer securities to the extent of shares sold through Broker X.

He can't if we trade with some other broker. Maybe there are provisions to do so. I don't know...

Hence, I am sure that we ain't giving POA to our Tbroker but with DP.

I believe we are clear to some extent (atleast)...

I just got zerodha trading account application forms. Among them is the POA form. It clearly appoints zerodha as my POA, empowering them to do all you said...transfer stocks from DP & so on to anyone...that's why many people who just hold long term investment, don't like to give POA. They instead give delivery slips whenever they sell!!

Will you check your DP and see if your Broker moves the stocks out of your DP to his own when he does margin funding or does he simply lienmark them there?

Being a long term swing investor I have not used margin funding till date, so can't check this myself.

My guess is that the broker moves the stock to his own account. This would help his own networth position etc. etc. with the exchange or whatever issues they need to fulfill.

If so, the broker needs to mve the stock to his account, a POA will enable him to do so, no matter who opened the account with the depository.

I think this is a "chor chor bhai bhai" situation....Depository gets additional revenue from multiple DPs per PAN and broker gets a simplified procedure that is handled without additional complications.

The consumer gets the back end of the stick :(

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Well-Known Member
Please check SEBI website whether POA meets the regulatory model

New POA consists of Authorising releasing shares sold & Selling by broker in the event of Client Debit (for which there are guidelines released by SEBI.

NSDL & CDSL - are Depositories

Broker who has the facility to open a Demat Account is a Depository Participant (DP)

Not aware about CDSL but NSDL has online facilities wherein one of the facility offered is to release shares for a settlement by a client directly...This would not require one to give POA to the Broker.... and one doesn't have the headache of physically handing over the Instruction Slip to the Broker.

Client can freeze his Demat Account if for an extended period it is not being used......

Shares bought on the exchanges or through IPO/FPO does not require POA to be credited to a Client's Demat Account...Basically No POA for Inbound.

Insisting on a Fresh Demat Account Is Scam By The Depository in Collusion with the Brokers.... Do The maths for how Much money is earned as AMC

They should make the Demat Account Portable just as Mobile Numbers are going to be from next year.



Well-Known Member

Are they askin' POA just for trading account?

Hence you said, you are a long term swing trader... why should you give POA to zerodha??? You can very well link your existing demat with zerodha trading account.

A bit confusion here....

Is it must or what?

Remember reading a post regarding demat account opening with zerodha....

Here he says that for day trading in cash segment and trading in derivatives, no need of demat account with zerodha... Will he give exposure/leverage for day trading in cash segment?

Why can't we link our existing demat account with some other broker?

I better ask in zerodha thread itself.... We would get a clear answer.


Well-Known Member

Yeah Savant,

I read about this a year back (may be two)

STeADY and IDeAS...

But very few broker offers this service... Even it varies from branch to branch

Hence you said, you are a long term swing trader... why should you give POA to zerodha??? You can very well link your existing demat with zerodha trading account.
Actually, I intend to start doing a little day trading occasionally, to get a feel :D

That's why the issue of POA. Zerodha agreed to open my account without DP with them, but they too were confused....they thought I was refusing POA...I said I will give POA on my existing DP they said they need to check if they can allow me margin trading if I give POA.

It seems no one knows the procedure of giving a POA to two brokers on the same DP account :D and that includes some of the the brokers themselves :D



Active Member
hey ppl, nice discussion.....i was looking for something like this.

here are few facts:
1. most of the times u give POA to the top management ppl of the brokers. now this thing has stopped, but on old days this used to be common practice. (in years 05to 09). I saw my POA for NSDL demat thru Religare, its on name of 20-30 ppl. god help me.

2. again in old days, the POA was very broad & not specific(allowing broker to bid on IPO using ur accnt buy/sell shares & many other things). it also used to be irrevocable.

3. now SEBI has came with new rules & stripped down a lot of things. but these brokers are clever ppl. i got letter from Religare stating, they are gonna acnt according to new POA norms for all the old POA holders. I got one q? do i need to sign my POA again with new norms? coz officially i am still binded to old POA

@ Sanjay
a) FYI, Zerodha gives u demat accnt with NSDL through IFSL. Zerodha is not a DP

b) ur damn right about one thing, CONFUSION. no offense, but (indian) brokers as species in general, have pathetic knowledge. i've seen a lot of ppl in this field to draw this conclusion. or they really don't wanna tell ppl the TRUTH. & we are too dumb to do some handwork as consumer.

again, nothing personal.
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