When will Zerodha allow activating POA and DDPI online? Other brokers are already providing this facility or during account creation itself where as zerodha is still asking to courier signed documents.
Hey Suraj,
For the longest time, you couldn’t sign a PoA online cos of the restrictions in the IT Act. I think only recently there has been an amendment in the Act(Sept 2022) that allows for eSign. However, SEBI introduced DDPI with a limited set of clauses that’s necessary for smooth functioning of a trading & demat account. So there’s no use case for a broker to take PoA from a client (unless someone wants control over bank account to debit for charges etc).
We don’t have any immediate plans to allow e-signing of DDPI since we believe the eDIS system of allowing a broker to debit securities through the entry of tpin and OTP is much safer and allows the user to have more control* over their account/transactions. For now, you’ll need to send a copy of the physical DDPI form.
*How better control?
Under eDIS, a client can choose what scrips to authorize and how many of each scrip to authorize. Say, you’re holding 100 shares of Reliance & 500 shares of TATA motors in your account. Through eDIS, you may choose to auth 30 shares of Reliance and 120 shares of TATA motors cos that’s what you intend to sell. This will ensure that a broker isn’t able to debit more than the authorized quantities. However, if the same account is enabled on DDPI, a broker can debit additional shares too, if there’s an obligation to deliver. Such obligation can be created either by the client placing the sell order themselves or a broker induced trade in the client account.
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@VenuMadhav still, when other brokers are providing an online option, why don’t you too?
Is there an online option to revoke the existing POA and enable eDIS?