What is the reasons for Introducing Demat Debit and Pledge Instruction DDPI?

The Demat Debit and Pledge Instruction (DDPI) was introduced by SEBI to make share transactions safer and more transparent for investors. Once the DDPI is submitted, the client is no longer required to enter the CDSL T-PIN and OTP to sell shares.

It replaces the old Power of Attorney (PoA) system and allows brokers limited access to sell or pledge shares only with the investor’s permission. This helps prevent misuse of the demat account and ensures better security and control for investors.

SEBI Circular: https://www.sebi.gov.in/legal/circulars/apr-2022/execution-of-demat-debit-and-pledge-instruction-ddpi-for-transfer-of-securities-towards-deliveries-settlement-obligations-and-pledging-re-pledging-of-securities_57546.html