Today there is a route called e-DIS through which it can be. But there are way too many restrictions on this.
How this works is that the broker has to collect an OTP from the client everytime the client places a selling order on the trading platform. Using this OTP as an authorization and without a POA the stock can be moved from client demat to the exchange. But there are a bunch of issues
- In markets which move fast, taking an OTP before every sell transaction is a horrible user experience.
- If the markets are falling and OTP delivery takes time on SMS/email, the client will not be able to sell. Which might be a big issue if the stock prices are dropping fast.
- There is a restriction of Rs 20lks per day worth of sales. Which means that all biggish size clients will not be able to use this route. The broker will have to run both POA and non-POA processes same time, which can be a process nightmare for online brokerages.
As Zerodha we have decided not to take this route because of the above points. We are pushing hard with regulators to find another online way without these restrictions.