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Investing

DDPI: What It Is and Why Brokers Ask for It

DDPI lets your broker debit your demat account only to settle your sales, pledge for margin and two other SEBI-set purposes. It is optional.

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Written by Ananya Iyer

Published 4 November 2026·6 min read

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DDPI, or Demat Debit and Pledge Instruction, is a limited authority you give your stockbroker. It lets the broker debit securities from your demat account for four purposes set by SEBI, mainly settling your sales and pledging shares for margin. It is optional. Without it, you approve each sale yourself through the depository’s eDIS process.

Key facts

Item Detail
Introduced by SEBI circular SEBI/HO/MIRSD/DoP/P/CIR/2022/44 dated 4 April 2022
In force from 1 September 2022 (moved from 1 July 2022); wider scope from 18 November 2022
Purposes allowed 4: settling your exchange trades, pledging for margin, mutual fund orders on exchange platforms, tendering shares in open offers
Mandatory? No. A broker cannot force you to sign it or refuse service if you do not
Replaces Power of attorney (PoA) for these purposes; existing PoAs stay valid until you revoke them
Signing Only with your explicit consent; must be stamped; can be signed digitally
Revocation Brokers offering DDPI must let you revoke or cancel it
Without DDPI Authorise sales through eDIS (CDSL: TPIN and OTP) or a physical delivery instruction slip

What DDPI allows and what it does not

After SEBI widened the scope in October 2022, a DDPI can be used only for these purposes:

  1. Transferring securities from your demat account to meet delivery obligations from trades you placed on a stock exchange through the same broker.
  2. Pledging or re-pledging securities to the broker or clearing member to meet your margin requirements.
  3. Mutual fund transactions placed through stock exchange order platforms.
  4. Tendering shares in open offers through stock exchange platforms.

SEBI’s circular says DDPI use is limited to these purposes. Before securities move for settlement, the depository matches the transfer against your net delivery obligation, as reported by the clearing corporation for that settlement date. Securities moved under DDPI go only to the broker’s or clearing member’s pool account, or to the clearing corporation’s demat account.

Anything else still needs your own instruction. That includes a gift or other off-market transfer to another person’s demat account.

DDPI vs the old power of attorney

Before DDPI, clients who wanted the broker to handle these debits signed a PoA. SEBI’s stockbroker FAQs describe a PoA as authority to operate the client’s demat account and bank account for purposes SEBI specifies. SEBI brought in DDPI to cut the misuse of PoAs.

Point DDPI Power of attorney
Scope Demat debits for the 4 listed purposes only Operation of demat and bank account for SEBI-specified purposes
New ones signed Yes No longer executed for settlement and margin pledges
Mandatory No No
Existing documents Not applicable Valid until you revoke them

If you signed a PoA years ago, it still works for your broker. You can revoke it and sign a DDPI instead, or rely on eDIS.

Selling without DDPI: eDIS and TPIN

SEBI lets you skip DDPI and complete settlement yourself with a physical or electronic delivery instruction slip (eDIS).

For a CDSL demat account, CDSL generates a TPIN for each account holder and sends it to the registered mobile number and email. You enter it on CDSL’s own web page, which your broker’s app opens, each time you authorise a debit. The steps usually run like this:

  1. Generate or reset your TPIN on CDSL’s eDIS page if you do not have one.
  2. In your broker’s app, open holdings and choose the option to authorise or sell.
  3. On the CDSL page, enter your TPIN.
  4. Enter the OTP sent to your registered mobile and email.
  5. Select the holdings and quantities you want to authorise.
  6. Place the sell order.

Zerodha’s help pages say this authorisation lasts for at most one day, and CDSL allows up to 100 instruments in one go. Other brokers follow the same CDSL process but may present it differently.

For an NSDL demat account, NSDL runs its own e-DIS facility. You give a mandate to debit and transfer securities for your exchange obligations. NSDL checks each debit against the clearing corporation’s obligation data and sends an SMS to your registered mobile.

eDIS adds an authorisation step before each sale. DDPI removes that step, so it suits people who sell often or pledge shares for margin. Our guide to buying and selling shares online walks through a full sell order with either route.

How to submit or revoke DDPI

Submitting DDPI

  1. Log in to your broker’s website or app and open the profile or account section.
  2. Find the DDPI option and read the purposes listed on the form.
  3. Accept the terms and e-sign the form, usually with an Aadhaar OTP, or download, sign and send the physical form if online signing is not offered.
  4. Pay any fee the broker charges. Zerodha, for example, charges ₹100 plus 18% GST.
  5. Wait for the broker to register the DDPI in your demat account. Zerodha says this takes up to 24 working hours and confirms by email.

Revoking DDPI or PoA

Brokers that offer DDPI must give you a way to revoke it. The process varies. Zerodha, for instance, asks clients to print its revocation form for PoA or DDPI, sign it, e-sign the scan and raise a support ticket; it says revocation can take up to 5 working days. Ask your broker for its form, then check your profile to confirm the DDPI no longer shows. After revocation, you sell through eDIS.

If you are still setting up your account, our explainer on how a demat account works covers the basics. DDPI also matters in corporate actions. When you sell rights entitlements in a rights issue, the broker needs DDPI or your TPIN authorisation.

Frequently asked questions

Is DDPI mandatory?

No. SEBI says DDPI is not mandatory, and a broker cannot compel you to sign it or deny you services if you refuse.

What is the full form of DDPI?

Demat Debit and Pledge Instruction. It authorises limited debits and pledges from your demat account.

Can I sell shares without DDPI?

Yes. You authorise each sale through eDIS, using your CDSL TPIN and OTP or NSDL’s e-DIS process, or with a physical delivery instruction slip.

Can my broker move my shares anywhere with DDPI?

No. DDPI covers only the four purposes SEBI lists. Settlement debits are matched with your net delivery obligation before the transfer.

What happens to the PoA I signed earlier?

It stays valid until you revoke it. New PoAs are no longer executed for settlement and margin pledges.

Does DDPI give access to my bank account?

The DDPI form covers debits and pledges from your demat account for the listed purposes. It does not include the bank account authority that a PoA could carry.

How long does a TPIN authorisation last?

Zerodha’s help pages say a CDSL TPIN and OTP authorisation lasts for at most one day, so you may need to authorise again on another day.

Sources

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