Zerodha TPIN Preauthorisation DDPI

TPIN preauthorisation on Zerodha

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TPIN preauthorisation is a one-time consent mechanism (similar to DDPI) that allows a Zerodha client to authorise the broker in advance for sells, eliminating the per-trade T-PIN entry. Historically this was an alternative to the per-trade T-PIN + OTP eDIS flow ; now largely superseded by DDPI and the CDSL block mechanism .

What preauthorisation provided

Pre-2024: Without preauthorisation, every sell of a CDSL-held share required the user to enter T-PIN + OTP. For active traders this was significant friction.

With preauthorisation:

  • One-time consent recorded with CDSL.
  • The broker (Zerodha) authorised to trigger sells.
  • No per-trade T-PIN + OTP required.

Effectively a “PoA-lite” framework.

Difference from full PoA

AspectFull Power of Attorney (PoA)TPIN preauthorisation
ScopeBroad (broker can debit demat freely)Narrow (sell instructions only)
DurationLong-term (years; until revoked)Configurable; typically annual
RiskHigher (broker control wider)Lower (specific to sells)
ApprovalWet signature + notaryOTP-confirmed

Pre-2022, PoA was the norm for retail demat accounts. After SEBI’s circular limiting broker PoA scope, TPIN preauthorisation and similar narrow consents replaced it.

Replacement by DDPI

DDPI (Demat Debit and Pledge Instruction) is the current preferred narrow-consent framework, replacing both PoA and TPIN preauthorisation. DDPI:

  • One-time signed (electronically).
  • Scope: sell, pledge, mutual fund transactions.
  • Revocable by the user.

Most Zerodha clients post-2022 sign DDPI during onboarding, bypassing both PoA and TPIN preauthorisation.

Current operational practice

For a Zerodha client today:

  • With DDPI signed: No T-PIN preauthorisation needed; DDPI covers the sell flow.
  • DDPI not signed: Per-trade T-PIN + OTP via eDIS flow (or CDSL block mechanism if applicable).
  • CDSL block mechanism active: Most sells handled via block without T-PIN entry; T-PIN required only for specific cases (pledge, transfer).

The friction of per-trade T-PIN has been largely eliminated by these layered changes.

If you don’t have DDPI

If you opted out of DDPI at onboarding (or signed up before DDPI was offered):

  • You can still sign DDPI now via Console > Profile > DDPI.
  • Or continue with per-trade T-PIN + OTP for sells.

Most users find DDPI worthwhile for the friction reduction.

Edge cases

  • Pledge / un-pledge: Still requires T-PIN + OTP (DDPI doesn’t cover this scope).
  • Inter-depository transfer: User-initiated; T-PIN + OTP usually needed.
  • Specific authorisation cases: May fall outside DDPI scope.

In these edge cases, the T-PIN + OTP flow is the path.

Security consideration

Even with DDPI signed:

  • The broker can only initiate sells (not arbitrary debits).
  • The sell still flows through the standard exchange settlement.
  • User can revoke DDPI at any time.
  • T-PIN remains the user’s secret for the rare cases needing it.

See also

External references

References

  1. SEBI, DDPI framework and PoA restrictions, sebi.gov.in.
  2. CDSL, TPIN and preauthorisation, cdslindia.com.
  3. Zerodha Support, DDPI vs T-PIN preauthorisation, support.zerodha.com.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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Conflicts of interest
WebNotes is independent. No relationship with any broker, registrar or bank named in this article.