Things to rememberOn a circular dated 6th October, 2022, the Securities and Exchange Board of India (SEBI) declared that the pre-existing Power of Attorney (POA) document that defined an important part of broker-client relationships in the stock market will be replaced by the new “Demat Debit and Pledge Instructions” (DDPI) document.
What is DDPI?
DDPI (Demat Debit and Pledge Instructions) is a document that allows a stockbroker (like Angel One) to debit the securities from your demat account upon their sale and deliver them to the exchange.
This means once the DDPI is submitted, you do not have to enter the CDSL T-PIN and OTP to sell any shares you hold. However, using the DDPI is voluntary, and you can continue selling shares by entering the T-PIN for every transaction.
Earlier, a POA (i.e. Power of Attorney) could be used for debiting the shares from the client’s account. However, the facility of POA is no longer available for new users – DDPI is now offered instead.
Points to Note
1. Individual account holder
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- If you are an individual account holder, You can activate DDPI online using this link through Angel One App.
- Please have your Aadhaar card ready when placing an online DDPI activation request to e-sign the application.
- Ensure that your Aadhaar card is linked to your mobile number to complete the process.
2. Joint account holder/ HUF account holder/ minor account holder/ NRI/ corporate account holder
- To activate DDPI, you can raise a ticket here (Create Ticket —> Select Account Details under Category —> Select Profile Details under Sub-Category) and attach the filled-in and signed DDPI form.
- You can download the form from the links below –
HUF | Joint | Corporate | Minor | NRI(E) | NRI(O)
- If you are an HUF account holder, then all family members’ name and signature is required along with the HUF stamp.
- If you are a joint account holder then all holder’s name and signature is required on the form .
- If you are a corporate account holder, then an authorized signatory signature and stamp is required.
- If it’s a minor’s account, then the minor’s name and guardian’s signature is required.
Process to Activate DDPI Online
Step 1. Accessing the DDPI option:
- Use this link to activate DDPI.
- Alternatively, log in to the Angel One app, go to the Accounts page, and click on the Profile Widget
- Use your mobile number/client ID and OTP to login
Step 2. Click on “DDPI Status”.
Step 3. Read the DDPI consent and proceed to esign
Step 4. You will be redirected for esigning the request. Enter the Aadhar details & OTP sent from Adhaar on your mobile number
- Make sure to use your own aadhar card for esigning.
Step 5. The request will be processed in 2-3 working days.
Future of the existing POAs and DDPIs
In case a client has not given the POA to his/her stockbroker already, the client can opt for DDPI. However, if the DDPI is also not submitted, then the electronic delivery instruction slip (E-DIS) must mandatorily be submitted each time the stock sell transaction is made.
Submitting e-DIS multiple times might be a hassle to a client and hence it is advisable that clients sign the DDPI at the earliest.
Moreover,
a. If a POA request has been submitted already before 1st September 2022 then DDPI is not required to be submitted.
b. But from 18th November 2022 onwards, only the DDPI request has to be submitted.
Reasons for introducing DDPI
- The POA had to be stamped and submitted physically which created a lot of trouble for both clients and brokers alike. But the DDPI can be electronically signed and submitted to brokers, saving time, space, effort and paper.
- A clear and transparent DDPI curtails possible misuse of the POA given by clients to the broker.
Conclusion
DDPI is an important document for seamlessly conducting your demat account operations. However, the process of signing your DDPI is extremely easy when done through an Angel One account. So do not worry, open demat account today with Angel One, India’s trusted broker!
