Demat Debit and Pledge Instruction (DDPI) is a document that allows a broker to debit the securities from the client’s demat account and deliver them to the exchange. SEBI introduced DDPI which limits debiting shares from a client’s account only if the client places a sell trade. DDPI replaced POA on November 19, 2022. Here’s why brokers or DPs need Demat Debit and Pledge Instruction:

·         To transfer securities from the Demat account to the stock exchange when a sell trade is placed

·         To pledge or re-pledge securities in the Demat account for margin trading

·         To transfer shares from the  demat account when the investor participates in a tender offer like takeover, buyback, or delisting

·         To debit mutual fund units from the Demat account when they are sold