IIFL POA

IIFL POA form is signed for a limited purpose. It permits IIFL to perform limited activities in the Demat account of a client like the debit of shares from the account.

IIFL asks its customers about the power of Attorney (POA). The company asks the investors to sign the IIFL POA form which gives limited authority to the broker to operate the demat account of a client.

Almost every broking company asks its customers about to sign the POA form at the time of opening a demat account or trading account.

As we know that to start trading or investment through the stockbroking firm, you need to open a trading and demat account.

At the time of opening of IIFL demat account, you will also be asked to sign an IIFL POA form. The form will be signed by two ways, digitally as well as on paper.

By giving the IIFL POA form to the broker, you are allowing or giving the broker right to withdraw the shares from your demat account to sell on your behalf.

IIFL can’t force its clients to sign the IIFL POA form. It depends on you whether you want to sign the form or not.

Let’s understand the whole process and purpose of IIFL POA form:

IIFL POA Form

Now, we are going to make you understand the basics of the IIFL POA Form. It will help you to get a clear picture of the IIFL POA form.

Demat IIFL POA refers to an authorization that allows IIFL to operate your demat account on your behalf.

For equity trading, a client needs to open

• Trading account
• Demat account

The trading account is used as a platform to buy and sell the shares. And demat account is to transfer the shares in electronic form.

When a trader sells the shares, it is transferred to the buyer’s demat account through the broker. To sell your shares to the buyer, IIFL needs your shares to deliver to the buyers. It same as in the case of buying the shares.

For buying the shares for you, IIFL will use the money of your demat account and will buy the shares from the sellers available in the market. 

For a sell order, you can transfer the shares in IIFL’s account in two ways:

• By transferring the shares manually to the IIFL’s Demat account.
• By giving Power of attorney to IIFL for automatic withdraw the share to the IIFL’S demat account.

Option 1 is not possible in online trading.

If you sell shares today, you can transfer it to the broker’s account the next working day to the buyer. If you fail to transfer, you will have to pay penalties and differences in the prices as well because it will create problems in transaction settlement.

So, to avoid these penalties that arise due to manual transfer of shares, almost every investor/trader submits the IIFL POA form. Or we can say, the IIFL POA form is for smooth trade settlement.

Some key facts related to IIFL demat POA:

• IIFL Demat POA is voluntary. It totally depends on the investor whether he/she wants to sign the POA form or not.
• IIFL will not charge for anything for POA from the clients. It is free of cost.
• The main purpose of demat POA is to ‘sell’ the shares by IIFL. It is not required for ‘Buy’ order.
• Demat POA is not required for future & options trades.
• Demat POA will remain active until you close your demat account.
• In case, the available money is not sufficient for the margin. IIFL will sell the shares of your demat account without informing you to recover the loss. This step is also a part of the demat POA.

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How to Fill IIFL POA Form?

To fill the IIFL POA form, a trader/investor will have to first get the form by downloading the same from the company’s website. After that, you will be required to fill the form with full attention.

You need to fill every blank space given in the form to fill by the clients.

It is mandatory to e sign on the IIFL POA form. After signing the form, you are required to send the form at the IIFL’S email address. At the same time, you are also supposed to Fax the form to the broker.

If you want to trade smoothly, you will have to fill and send this form to IIFL as, without it, you will not be able to place a sell order. This is just because it is practically impossible to place a sell order in online trading.

While going through the IIFL POA form filling process, an investor must fill the First/sole holder (Trading account holder) name with his/her age and address in Schedule 1.

In the same way, you will have to fill the second and third holder name as well with the age and their address.

There are some other columns also which are mandatory to fill.

In schedule 2, you will have to sign the form with the second and third holders also.

After that, you will have to get the signature of two witnesses with their name and signature. Witnesses can be either of your family members, your friends, or any of your relatives.

On the last page of the form, you will have to self attest the form with your signature given space below the declaration.

The above description will help you to correctly and easily fill the IIFL POA form.

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IIFL POA Form Download

To complete the process of IIFL POA form filling, you will have to download the form first. After that, you can email or fax the form to IIFL. Be careful to fill the mandatory fields of the form. Blank fields which are mentioned as mandatory may hold your POA form.

Some of the mandatory fields of IIFL POA form are:

• Signature
• Address
• Witness name and signature

You can go to the company’s website to download the form.

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Conclusion

IIFL POA Form is available online. One can easily download the form from the company’s website. Though, demat POA is not a compulsory document by SEBI.

It helps a trader/investor in the smooth trading of shares, especially to sell your shares. So, always sign a demat POA in the name of a SEBI registered broking firm like IIFL.

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Frequently Asked Questions

1. Is demat POA compulsory for the trading of shares?
No, not compulsory, but needed for smooth running of trading activity.

2. Is IIFL Demat form available online?
Yes, IIFL demat form available online.

3. What are the types of demat POA?
Two types of demat POA are:

• Limited Power of Attorney
• The general power of attorney

4. Can the demat account holder cancel the POA?
Yes, by giving advance notice, an account holder can cancel his/her demat POA at any point in time.

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