Why is Power of Attorney (POA) required to open an account?

by Balaji GK | Jul 18, 2018 | |

POA serves for various purposes but below are the prominent ones:

In order to execute a sell order on behalf of a client for any financial product (stock, mutual funds units, ETF’s etc.) deposited in clients Demat account.
To pledge stock of clients which enables them to enter the position with negligible balance.
To square off the order on behalf of a client in case of insufficient margin etc.