What is DDPI?

What is DDPI?

Demat Debit Pledge Instruction (DDPI) facilitates pledging securities in your Demat account as collateral for margin requirements. It enables selling purchase transactions without Sell Authorization or T-pin. Unlike the traditional POA/DDPI, DDPI allows limited access to your Demat account for secondary market transactions only.

Key Points:

- DDPI is optional and not mandatory for account opening.

- It applies to pledging or repledging securities.

- With DDPI, you authorise the broker for limited access to your account for: Settling trades executed by you and pledging/re-pledging securities to meet margin requirements.

-The utilisation of DDPI will be restricted to two specific purposes:

  •  Facilitating the transfer of securities from the client's account for stock exchange-related deliveries or settling obligations resulting from executed trades.
  • Allowing the pledging or re-pledging of securities to the Trading Member (TM) to fulfil margin requirements.

- It serves the same purpose as POA/DDPI, preventing misuse.

- Clients can opt for DDPI or use physical/electronic Delivery Instruction Slips (DIS/eDIS) for settlement.

For more details, refer to SEBI guidelines and reach out to 5paisa for seamless assistance.



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