How power of attorney is used by Stock Brokers ?

A power of attorney is a document that gives legal authority to your stockbroker for your account to be operated according to the instructions in it. We use power of attorney every time you sell shares to debit your demat account and give it to the exchange. When you want to pledge shares to receive a collateral margin to trade futures or options, power of attorney can also be used to debit shares from demat accounts.