@nithin can a broker force client to use ddpi even if they prefer edis? For eg. In some brokers they dont allow to place gtt order if we dont provide ddpi permission. Is it against any sebi rule or they are doing everything legally?
Furthermore, the broker forces clients to open accounts for all segments (Equity, MF, F&O, Currency, and Commodity) and doesn’t allow opening an account only for Equity and Mutual Funds. Is this legal?
Hmmm… This isn’t allowed. A broker is to give an option to opt out.
Yeah, that’s what I think too.
But the broker says that if you want to open an account with them, you must activate all segments. After opening the account, you can temporarily disable the unwanted segments
I don’t find requiring DDPI to place special order types like GTT an issue. As you’re aware, we need debit authorization from users to earmark stocks for payin. GTT are special order types that hit the stock exchange system when they get triggered. If it’s a sell GTT, then the order will not go through if you’re an eDIS client and haven’t approved the debit (which means you’ll have to login and approve debit everyday, which defeats the purpose of GTT in the first place). So to make it convenient to users and to ensure that orders get executed when they’re triggered a broker can insist on DDPI while placing GTT orders.
Right @VenuMadhav , but ideally, a broker should offer both options. If a client doesn’t want to submit a DDPI, they should still be able to use special features like GTT by authorizing their holdings daily using a TPIN.
This is why I like Zerodha. Zerodha didn’t force us to submit a DDPI to use GTT
Furthermore, the broker forces clients to open accounts for all segments
A broker is to give an option to opt out
Dhan actually forces this. They opened all commodity, F&O wagera segments. No intention of even checking those but it was forced. They also make you state that you do not want to nominate anyone, and ask you to nominate someone after account opening. Very weird and shady.