Demat Debit and Pledge Instruction (DDPI)

Demat Debit and Pledge Instruction (DDPI)

Demat Debit Pledge Instruction (DDPI) is a process through which you can pledge your securities in a Demat account as collateral to secure a margin and you may sell your purchase transaction without Sell Authorization or T-pin. A POA/DDPI is a document that allows a broker to debit shares from the Demat account and deliver them to the exchange.

To prevent misuse of POA/DDPI, SEBI, has introduced DDPI, which limits debiting shares from a client’s account only for secondary market transactions.
  1. POA/DDPI  is  optional & should  not  be  insisted  upon  by  the  stock  broker for opening of the client account.

  2. DDPI -- will also be applicable for pledging or repledging of securities.

  3. Under DDPI, clients can explicitly agree to authorize the stock broker to access their beneficiary ownership account for the limited purpose of meeting pay-in obligations for settlement of trades executed by them.

  4. The use of DDPI will be limited only for two purposes:
    - For the transfer of securities held in the account of the client towards stock exchange related deliveries or settlement obligations arising out of trades executed.
    - For pledging/re-pledging of securities in favour of the Trading Member(TM) for the purpose of meeting margin requirements.

  5. The DDPI shall serve the same purpose of POA/DDPI and mitigate the misuse of POA/DDPI; the client can use the DDPI or opt to complete the settlement by issuing physical delivery Instruction Slip (DIS) or electronic Delivery Instruction Slip (eDIS) themselves.
Refer to the SEBI link here for your reference.