{"id":512,"date":"2025-08-13T09:28:57","date_gmt":"2025-08-13T09:28:57","guid":{"rendered":"https:\/\/shoonya.com\/faq\/?p=512"},"modified":"2026-06-18T11:59:44","modified_gmt":"2026-06-18T11:59:44","slug":"why-do-i-need-to-take-authorization-to-sell-my-own-shares","status":"publish","type":"post","link":"https:\/\/shoonya.com\/faq\/regulatory-and-compliance\/why-do-i-need-to-take-authorization-to-sell-my-own-shares\/","title":{"rendered":"Why do I need to take authorization to sell my own shares?"},"content":{"rendered":"\n

You need to take authorization to sell your own shares because:<\/p>\n\n\n\n

    \n
  1. Regulatory Compliance: <\/strong>Shares are held in your Demat account, which is maintained by a depository (like CDSL or NSDL<\/a>). The broker does not have direct control over these shares, so authorization is required to ensure compliance with regulations.<\/li>\n\n\n\n
  2. Security:<\/strong> The authorization process ensures that only you (the account holder) can initiate the sale of your shares, protecting against unauthorized transactions.<\/li>\n\n\n\n
  3. Transfer Process:<\/strong> To sell shares, they need to be transferred from your Demat account to the trading account. Authorization is necessary to facilitate this transfer.<\/li>\n\n\n\n
  4. Options for Authorization:<\/strong> You can authorize the sale through various methods, such as Power of Attorney (POA) or eDIS (electronic Delivery Instruction Slip<\/a>). eDIS<\/a> allows for faster processing without the need for physical documentation. In summary, authorization is an essential step to ensure that the sale of shares is secure, compliant, and properly executed. If you have any further questions or need assistance, feel free to ask!<\/li>\n<\/ol>\n\n\n