DDPI on WebNotes

How to convert PoA to DDPI on Zerodha

Tue, 12 May 2026 00:00:00 +0000

This guide explains how to transition an existing Power of Attorney (PoA) registered with Zerodha to the Demat Debit and Pledge Instruction (DDPI) introduced by SEBI in 2022, covering the regulatory background, the practical differences between the two instruments, and the specific steps on Zerodha’s Console platform.

Step-by-step procedure

Step 1: Understand the PoA-to-DDPI transition

The older PoA framework was introduced by brokers as a mechanism to simplify the debit of securities for sell order settlement. Without a PoA or DDPI, each debit requires a separate Electronic Delivery Instruction Slip (eDIS) authorised by the client.

How to fix a DP-related sell rejection on Zerodha

Tue, 12 May 2026 00:00:00 +0000

A DP (Depository Participant) sell rejection on Kite occurs when the system cannot authorise a debit from your demat account to deliver shares against a sell order. Since all equity delivery positions in India are held in dematerialised form with the depository (CDSL in Zerodha’s case), the demat debit authorisation is a mandatory step for every delivery sell.

There are two valid methods to authorise a demat debit at Zerodha: the TPIN + CDSL OTP flow (transaction-by-transaction, online), or the pre-authorised DDPI (Demat Debit and Pledge Instruction). The older Power of Attorney (POA) arrangement was phased out by SEBI in 2022 in favour of DDPI.

How to sign DDPI on Zerodha

Tue, 12 May 2026 00:00:00 +0000

This guide explains how to sign the Demat Debit and Pledge Instruction (DDPI) on Zerodha, what it replaces, and the practical benefit for equity delivery sell orders.

Prerequisites

An active Zerodha demat and trading account with the equity delivery segment enabled.
Access to the Aadhaar-registered mobile number for the OTP required during e-sign.
Understanding of what the DDPI authorises: it is a standing instruction that permits Zerodha to debit (transfer out) securities from the demat account solely for the purpose of settling sell orders that the account holder has placed. The DDPI does not give Zerodha blanket authority over the demat account; the scope is limited to settlement of client-initiated sell transactions.
DDPI signing is optional. Without it, every sell order on an equity delivery holding requires the account holder to separately authorise the debit via CDSL’s TPIN (a 6-digit PIN) or the CDSL eDIS system at the time of the trade. DDPI signing eliminates this per-trade authorisation step.

Step-by-step procedure

Step 1: Understand the DDPI and what it replaces

Prior to the DDPI framework introduced by SEBI in 2022, brokers used a Power of Attorney (PoA) document that gave them broad authority over the client’s demat account, including pledging and off-market transfers in some cases. Concerns about PoA misuse led SEBI to introduce the DDPI as a more restricted instrument.

How to transfer shares from Zerodha to another broker

Tue, 12 May 2026 00:00:00 +0000

This guide explains how to transfer equity shares out of your Zerodha demat account to another broker’s demat account. The transfer is executed as an off-market transaction through CDSL’s Easiest platform. Zerodha holds all client demat accounts at CDSL; the target broker may be another CDSL participant or an NSDL participant (which requires an inter-depository transfer).

Before you begin

Confirm that the shares you want to transfer are not pledged for margin at Zerodha. Pledged shares must be unpledged first. Go to Console > Portfolio > Holdings and check the pledge status.
Confirm that the shares are not under a lock-in (IPO allotment lock-in, ESOP vesting lock-in, or bonus lock-in). Locked-in securities cannot be transferred until the lock-in expires.
Ensure you have your Zerodha 16-digit BO ID (available at Console > Profile > Demat account).
Ensure you have the target broker’s 16-digit BO ID. For CDSL targets, the BO ID starts with the DP’s 8-digit DP ID. For NSDL targets, the format differs; request the target’s DP ID + client ID combination.
Off-market transfers do not require DDPI (Demat Debit and Pledge Instruction) authorisation at Zerodha; they are self-initiated through CDSL Easiest.

Step 1: Find your Zerodha BO ID

Log in to Zerodha Console and go to Profile > Demat account. Your 16-digit CDSL BO ID is displayed there. You can also find it on the CMR (Client Master Report); see How to request a CMR / CML from Zerodha.

DDPI one-time charge at Zerodha

Mon, 11 May 2026 00:00:00 +0000

Overview

The Demat Debit and Pledge Instruction (DDPI) is a limited power of attorney introduced by SEBI in 2022 to replace the broader Power of Attorney (POA) that was previously used by depository participants to authorise debits from client demat accounts for exchange settlement. At Zerodha, activating the DDPI is a one-time optional process that carries a charge of Rs 75 plus 18 percent GST, totalling Rs 88.50.

The DDPI grants Zerodha, as the depository participant, specific and limited authority to debit the client’s CDSL demat account for the purpose of: (a) settling equity delivery sell transactions executed on stock exchanges, (b) settling pledge instructions for collateral margin. The DDPI cannot be used by Zerodha for any purpose beyond these specific authorities, unlike the older POA which could be broadly drafted.

Power of attorney and DDPI transition

Mon, 11 May 2026 00:00:00 +0000

Overview

For most of the history of modern Indian securities markets, brokers obtained a power of attorney (POA) from clients as part of the account-opening process. The POA granted the broker broad authority to operate the client’s demat account, enabling the broker to debit shares for settlement of sale transactions without requiring the client to issue a separate instruction for each trade. While operationally convenient, the POA model created significant scope for misuse: brokers with POA access could, in principle, pledge or transfer client securities beyond the narrow purpose of settlement.