DDPI one-time charge at Zerodha

From WebNotes, a public knowledge base. Last updated 11 May 2026. Reading time ~6 min.

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.

Background: POA to DDPI transition

Before the SEBI circular on DDPI (SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/77, May 2022), brokers typically obtained a broad Power of Attorney from clients at the time of account opening. The POA allowed the broker to submit demat debit instructions on the client’s behalf without individual transaction authorisation. This was operationally convenient but exposed clients to risk – a POA could, in theory, be misused to transfer shares without the client’s knowledge.

SEBI’s DDPI framework replaced the POA with a narrowly scoped instrument that:

Is limited to the specific purposes of exchange settlement and pledge
Cannot be used for off-market transfers or other demat operations
Must be in SEBI-prescribed format
Must be registered with CDSL

SEBI mandated that brokers transition clients from POA to DDPI and stop accepting new POAs for demat debit purposes from 1 October 2022.

DDPI versus TPIN mechanism

Clients who do not activate DDPI can still sell delivery shares at Zerodha. The alternative is the CDSL TPIN mechanism, which requires the client to:

Receive a one-time CDSL TPIN (transaction PIN) for the demat account.
Before each delivery sell order is placed (or on the day of the sale), authorise the demat debit through CDSL’s OTP-based system (via SMS or CDSL easiest portal).
The authorisation is valid for that trading day.

The TPIN mechanism is free but adds a step to every sell transaction – the client must actively authorise the debit before the shares can be deducted. This is operationally cumbersome for frequent sellers and can cause delays if the OTP does not arrive promptly. DDPI eliminates this per-transaction step; once activated, the client can sell delivery shares without any additional authorisation for each transaction.

Charge structure

Parameter	Value
One-time DDPI activation charge	Rs 75
GST at 18%	Rs 13.50
Total	Rs 88.50
Frequency	One-time (not annual)
Processing	Physical or digital signing of DDPI form

The Rs 88.50 is a one-time fee that covers Zerodha’s administrative cost of processing the DDPI registration with CDSL. There is no annual renewal charge for DDPI.

How to activate DDPI at Zerodha

The client logs into Zerodha’s platform and navigates to the account settings or profile section.
Zerodha generates a DDPI document in the SEBI-prescribed format with the client’s details pre-filled.
The client reviews and signs the DDPI – this can be done via Aadhaar-based e-Sign (digitally) or by physical signature on a printed form sent to Zerodha’s office.
Zerodha registers the DDPI with CDSL.
Once registered, the DDPI is effective for all future delivery sell transactions.

The one-time charge of Rs 88.50 is debited from the trading ledger at the time of registration.

Who should activate DDPI

DDPI is recommended for:

Clients who sell delivery shares frequently and find the TPIN authorisation process cumbersome
Clients who use GTT (Good Till Triggered) orders for delivery shares and want automatic execution without manual TPIN authorisation each time
Clients who use Zerodha’s automated features (baskets, rebalancing tools) that involve delivery sells

Clients who sell delivery shares very rarely may find TPIN sufficient for their needs and avoid the Rs 88.50 charge.

Zerodha’s NRI clients and DDPI

NRI clients with PIS accounts can also activate DDPI for their CDSL demat accounts at Zerodha. The charge and process are the same as for resident clients (Rs 75 + GST). NRI clients trading under the non-PIS / NRO route similarly benefit from DDPI if they trade delivery shares.

Comparison with other brokers

Most major discount brokers charge for DDPI activation:

Broker	DDPI one-time charge
Zerodha	Rs 75 + GST = Rs 88.50
Groww	Rs 100 + GST
Upstox	Rs 45 + GST
Angel One	Free (included in account opening)

The Rs 88.50 at Zerodha is within the mid-range. Given that DDPI is a one-time charge that eliminates per-transaction TPIN friction for an indefinite period, it is economical for active delivery traders.

References

SEBI Circular on Demat Debit and Pledge Instruction – SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/77 (May 2022)
CDSL Circular on implementation of DDPI framework (2022)
SEBI (Depositories and Participants) Regulations 2018 – powers of depository participants
Zerodha Charges page, support.zerodha.com/category/charges (accessed May 2026)
Zerodha support article on DDPI activation

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WebNotes Editorial Team

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.

Last reviewed: 11 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.