In November 2022, SEBI introduced the Demat Debit Pledge Instruction (DDPI), replacing the Power of Attorney (POA). The DDPI enables brokers to debit securities from your demat account and deliver them to the exchange.
Submitting a DDPI eliminates the need for CDSL’s TPIN and OTP during the sale of shares, which is particularly beneficial for those who use GTT orders to sell shares from their holdings. Since CDSL authorization is only valid for one day, one has to reauthorize daily to avoid GTT order rejections.
Additionally, submitting the DDPI removes the requirement to provide CDSL authorization during physical delivery or when placing orders for buybacks and delisting.
We have now made the DDPI activation process available online. To activate the DDPI online, you will need your Aadhaar and an Aadhaar-linked mobile number.
Follow the steps below to activate:
- Log in to the Console or visit this link.
- Click on Account.
- Click on Demat and then on Enable Demat Debit and Pledge Instruction (DDPI).
- Accept the terms and conditions, then click on Continue.
- Click on Proceed, then on Sign Now.
- Accept the terms and conditions and enter your Aadhaar number.
- Click on Send OTP.
- Enter the OTP received.
- Click on Verify & Sign.
A fee of ₹100 plus 18% GST applies to enable DDPI online and will be deducted from your Zerodha account balance.
Once the DDPI activation request is submitted, it will be processed within 48 hours. You will receive a confirmation email once it is processed.
Note that only individual account holders can activate the DDPI online. If you have an NRO-PIS, a joint account, or a non-individual account, DDPI has to be activated offline. We’ve explained the offline process here.