POA Full Form in Share Market

What is the Full Form of POA in the Share Market?

The POA full form in the Share Market is Power of Attorney. The POA is the document that gives a person legal authority to act on behalf of the trader as per the terms that they have mentioned in the document. For a Demat account, POA gives the online broker the legal authority to make certain important decisions on their account.

Types of POAs

There are two primary types of Power of Attorney. Specific POA, otherwise known as limited POA, grants the broker a restricted authority for specific purposes. It is designed for specific tasks and comes with an expiration date. General POA bestows broader decision-making power upon the broker. It is comprehensive and is less common in the stock market.

Precautions to take before signing POA:

Before signing a Power of Attorney, traders should make sure that their online broker is registered with SEBI. They should also make sure that the POA contains the name of the online broker and not the names of his associates or his employees. Drafting the POA doesn’t require any additional charges. If the broker asks for extra charges, then it is mandatory to shift to another broker.