What is Demat Debit and Pledge Instruction (DDPI)?

DDPI (Demat Debit and Pledge Instruction) is a document that authorizes your stockbroker, like Arihant Capital, to directly debit securities from your demat account when you sell them, enabling smooth delivery to the exchange. DDPI is beneficial for frequent traders and those using mobile platforms, as it enables faster and smoother trade settlements.

Once you submit the DDPI, you no longer need to enter the CDSL T-PIN and OTP each time you sell shares. It simplifies the selling process but remains optional, you can still opt to sell stocks using the T-PIN for each transaction.

To know various methods to authorize sell transaction: click here

Previously, a Power of Attorney (POA) served a similar purpose, but it's no longer permitted for new users. DDPI has now replaced POA for this function.

In a circular issued on October 6, 2022, the SEBI announced that the traditional Power of Attorney (POA) used in broker-client arrangements within the stock market would be replaced by a new document called “Demat Debit and Pledge Instructions” (DDPI). This marks a shift in how brokers are authorized to access and manage clients’ demat account transactions.