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Power of Attorney or POA is mandatory is for your Demat Account. Most of the brokers or your trading account provider will tell you to provide Power of Attorney or POA & appoint them as your lawful attorney of your Demat Account.
Power of Attorney or POA is a legal document and broker can operate your Demat Account freely. Typically, POA is required at the time of selling the stocks or shares in your Demat Account. In case, you prefer this process to be online, In this case through Power of Attorney or POA, you can authorize your broker to debit the shares from your Demat account and provide to the stock exchange.
As the Power of Attorney or POA is voluntary. Therefore, if you decide not to provide the same then you have to fill and sign the Delivery Instruction Slip & mail to your broker so that they can debit shares from your Demat Account.
Power of Attorney or POA is not required in case of Derivatives i.e. Future and Options trading or Intraday Trading. It is only required in case you sell the shares in your Demat Account.
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