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.

DP Sell Rejection on WebNotes

How to fix a DP-related sell rejection on Zerodha