Document

Power of attorney (POA) / Demat Debit and Pledge Instruction (DDPI)

Modified on: Fri, 25 Nov, 2022 at 6:09 PM

A POA is a document that allows a broker to debit shares from the Demat Account and deliver them to the exchange. 

To prevent misuse of POA, SEBI, through the circular SEBI/HO/MIRSD/DoP/P/CIR/2022/137  introduced Demat Debit and Pledge Instruction (DDPI) in lieu of POA

DDPI limits debiting shares from your account for following reasons only:

1) Transfer  of   securities  held  in  the  beneficial owner  accounts   of  the  client   towards  Stock Exchange   related deliveries /settlement obligations arising out of trades executed by clients on the   Stock Exchange  through  the same stock broker secondary market transactions, i.e, debiting shares from the client’s Demat account.


2) Pledging  /  re-pledging  of   securities  in favour of  trading   member  (TM)  /   clearing  member (CM)  for   the  purpose  of   meeting  margin requirements of the clients in connection with the trades  executed  by  the  clients   on  the Stock Exchange


3) Mutual Fund transactions being executed on Stock Exchange order entry platforms 


4) Tendering   shares    in   open   offers through Stock Exchange platforms


 

What should I do to submit DDPI: 


Follow the steps below to activate DDPI for your account.


  1. Download the DDPI document (PDF)
  2. Fill and sign (5 signatures) the document. In case of joint account, all holders to sign in the 5 designated places in the document.  
  3. Forward signed document to our office address below:

  

Client Registration Department - DDPI 

TRADEPLUS, C/O Navia Markets Ltd

No 9, Ganga Griha, 4th Floor

Nungambakkam High Road

Chennai - 600034. 


If you have sent us your DDPI to our office, it generally takes us 3 to 4 working day for it to be linked to your account after receiving it. However, in some cases, it could take longer as the DDPI needs to be franked, which is a process beyond our direct control.


Note: The hard copy of the DDPI has to be sent because they have to be 'franked' (stamped). Due to which soft copies of the DDPI isn't accepted.

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