Power of attorney (POA) / Demat Debit and Pledge Instruction (DDPI)
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.
- Download the DDPI document (PDF)
- Fill and sign (5 signatures) the document. In case of joint account, all holders to sign in the 5 designated places in the document.
- 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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