Some questions on PoA in the light of Karvy fiasco

Do you think having derivative and margin disabled makes the demat safe?

Thanks in advance

Not sure but now-a-days there is two factor authentication for trades involving margin and also for even logging in to dmat account. Without OTP can some one from broker side login and execute margin trades/FnO etc.?

Is it possible to get the PoA changed from general to new ones or with new rules, it gets updated by default? If not, is there any such process to get to a more specific PoA in case someone has old general ones?

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SEBI has done away with POA and it has been replaced by DDPI. Demat debit and pledge instructions. The difference is that Ddpi can be digitally authenticated or stamped unlike the POA. And it has just 4 simple points related to debit from a demat account.

DDPI has been enforced from September last year.

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I have an account with HDFC securities. How do i check if i have given a POA ?

That looks good. So does it mean that whatever POA given by investors to their brokers previously is no longer valid and everything till date is replaced by DPPI?

Can you give more details on DPPI, how secure it is and loopholes if any, if possible…Thanks

No, the older POA based accounts will continue till you revoke the POA.

If you do a simple search for DDPI you will learn everything.

DDPI gives DP instructions to debit shares from your demat account only if their is a sell order placed by you whereas POAs were prone to be misused because they give control to DP.

Few points on joint account:

Only ‘transfer cum Closure’ requires the target DP account to mirror the account that you are transferring from. But if you do not close the account, you can transfer to anybody/any account albeit with tax implications.

To transfer, correct DIS slip is needed.

Joint account can be transferred through Easiest but your DP has to approve the easiest registration with a hard copy submission procedure.