What is the Demat Debit and Pledge Instruction (DDPI)?
The Demat Debit and Pledge Instruction (DDPI) is a document that authorises a stockbroker and Depository Participant to access an investor’s demat account solely for:
- Transferring securities held in the client’s demat account towards exchange-related deliveries/settlement obligations arising from trades executed on the stock exchanges.
- Pledging/Re-pledging of securities in favour of a Trading Member (TM)/Clearing Member (CM) for the purpose of meeting margin requirements in connection with trades executed on the stock exchanges.
- Mutual fund transactions executed on the stock exchanges.
- Tendering shares in open offers through the stock exchanges.
To complete settlement obligations, you can either use a DDPI, a physical Delivery Instruction Slip (DIS) or an electronic Delivery Instruction Slip (e-DIS).
Points to note with respect to Geojit:
DDPI will replace PoA authorisation from September 1st, 2022.
The DDPI serves the same purpose as the PoA authorisation.
It is not compulsory for an existing client to issue a DDPI. Existing PoAs shall continue to remain valid till revoked by the client.
It is a voluntary document and shall be executed only if a client provides their consent for the same.
Clients can complete trades either using the PoA/DDPI or by issuing a DIS/e-DIS.