@zerodha Why your team recommends forcefully to sign PoA when I intend only DDPI as per recent circular from sebi? This is unacceptable
This is what our team replied to me.
Why collect PoA if we’re already collecting DDPI? DDPI limits debiting shares from investors’ accounts ONLY for secondary market transactions. This means if a client wants to place a mutual fund redemption or buyback order (for which we’ve to debit MF units/shares), DDPI won’t work. For this, we’ll still need to collect PoA from the client.
But that said, we are seeking a final confirmation from CDSL for trust accounts which will solve the above issue; once that comes in, we will remove POA from everywhere and just have DDPI.
Does the new circular solve this issue?
Yeah, it looks like it will. @lindo can you check on this and respond here?
The effective date of this is November 18, 2022. We are confirming this with CDSL if this covers all. I will confirm on this.
If you choose to give only the DDPI you can print the last two pages from here and fill,sign and send it to our Bangalore HO. Zerodha, #153/154,
4th Cross, J.P Nagar 4th Phase,
Opp. Clarence Public School,
Bengaluru - 560078
Q1) GTT (active for 1 year) will work without CDSL pin- > with DDPI active and POA revoked… please confirm
Nithin sir pardon me for tagging you but couldnt see anyone else from zerodha team in this chat thread hence tagged you and lindo.
Q2) also if we have sent the POA earlier we can send the POA revocation form and along with it send the DDPI activation signed form as lindo described above to get DDPI benefits, and post that in our CMR(Client Master Record) copy POA will come as non active
Can DDPI now be used for Mutual Fund redemptions? The DDPI form uploaded on Zerodha does not mention mutual fund redemptions (see image below):
The DDPI implementation is put off until January 2023
The SEBI circular in this regard is here: https://www.sebi.gov.in/legal/circulars/nov-2022/extension-of-timelines-for-implementation-of-sebi-circulars-sebi-ho-mirsd-mirsd-pod-1-p-cir-2022-137-and-sebi-ho-mirsd-dop-p-cir-2022-119_65464.html
If DDPI is given to Zerodha, can we place GTT 1 year valid sell order for existing equity holdings in demat and at the time of trigger it wont ask for CDSL pin, please clarify?
Right, once you submit DDPI along with POA, CDSL TPIN authorisation will not be required.
@ShubhS9 DDPI it self is kind of POA , or we have to submit the standard POA and DDPI both things but then what is the advantage of DDPI as DDPI means kind of POA with only specific usage, please advise
Currently, DDPI can be used to debit shares from an investor’s account only for secondary market transactions. POA is still required to debit mutual fund units or shares when you place a mutual fund redemption order, buy-back order, etc., as the DDPI won’t work in this case.