What is DDPI (Demat Debit and Pledge Instruction)?

The SEBI has introduced a circular regarding the execution of Demat Debit and Pledge Instruction (DDPI) which will replace the POA (Power of Attorney). DDPI is an authority a client gives to the broker and to the depository participants for the purposes mentioned below. This is effective from 18th November 2022.

1. For the transfer of shares held in the demat account of the client, to the exchange when the stock is sold by a client.
2. For pledging/re-pledging of securities for the purpose of meeting margin requirements of a client.
3. For taking out the shares from the demat account when a client participates in tender offers (Buyback/Delisting/Takeover)
4. For debiting Mutual Funds from the demat account on sale transactions

What if POA is already submitted?

POA requests updated before 1st Sep 2022, will continue to work as long as the client doesn’t revoke the same. To revoke an existing POA, a client has to courier account modification form to our corporate office address.

Is DDPI compulsory?

In case a POA is not given, then the client can opt for DDPI. If DDPI is also not submitted, then the electronic delivery instruction slip (E-DIS) needs to be submitted each time whenever the stock sell transaction is made. Submitting e-DIS multiple times might be a hassle to a client. To avoid this, we would suggest submitting a one-time DDPI form online through BOX as mentioned below. 

How to opt for DDPI? 

1. You can submit the DDPI form from two places.
   1. You will get a popup on BOX login.
      
   2. If you miss the above, go to My Profile, under the Demat Account section, click on “Submit DDPI”.
      
2. Check e-stamp and DDPI form. Click on Proceed to e-sign both the forms. (As a part of regulatory requirement, the DDPI form has to be e-stamped)
      
                 E-stamp form                              DDPI form
3. Enter your Aadhaar number and get OTP on your mobile (your number should be registered with your Aadhaar to get an OTP)
   
4. Once the OTP is submitted, the request shall be processed in 2 working days.

Important to Note: 

1. If a POA request is submitted before 1st September 2022 then DDPI is not required to be submitted. 
2. From 18th November 2022 onwards, only the DDPI request has to be submitted. 

Reason for introducing DDPI

1. The DDPI can be electronically signed and submitted to brokers. This enables the client to avoid the cumbersome process of submitting POA physically.
2. POA must be stamped physically. This increases physical maintenance activity. DDPI can be digitally stamped. 
3. To avoid possible misuse of POA given by clients to the broker. 
4. Online DDPI made the client open an account with no paperwork.