How can someone safeguard their Demat account with power of attorney to broker?

You grant power of attorney (PoA of the Demat Account) to your broker. This gives you access to any transaction that he makes on your behalf. This is a risky decision. Online stock trading is dependent on the PoA. It facilitates seamless transactions between your trading account and your demat account.

There are a few things you can do to protect your PoA demat account.

1. A demat account is not necessary if you're not involved in delivery trades. You don't need to grant power of attorney to the broker even if you have demat accounts.
2. Both the Broker (depository participant), and CDSL/NSDL/depository (depository), send instant alerts, statements and documents via SMS and email for all demat transactions. They should be checked carefully each time.
3. You can open several Demat accounts as mush as you wish. You can open another detail account with the same broker if you don't want to give your broker access to certain holdings. You or your broker can deposit shares in this account, but they cannot be withdrawn.
4. If you don't need the PoA, you can revoke it. If you don't need the PoA, close your demat account.