What is DDPI?
DDPI (Demat Debit and Pledge Instructions) is a document that allows a stockbroker (like Angel One) to debit the securities from your demat account upon their sale and deliver them to the exchange.
This means once the DDPI is submitted, you do not have to enter the CDSL T-PIN and OTP to sell any shares you hold. However, using the DDPI is voluntary, and you can continue selling shares by entering the T-PIN for every transaction.
Earlier, a POA (i.e. Power of Attorney) could be used for debiting the shares from the client’s account. However, the facility of POA is no longer available for new users – DDPI is now offered instead.
Why Should You Use DDPI?
DDPI makes frequent trading of shares a hassle-free process. You should definitely consider using DDPI because it allows Angel One to perform the following functions on your behalf –
- Transferring shares from your demat account to the exchange upon their sale.
- Pledging/re-pledging of securities in favour of a Trading Member (TM) or Clearing Member (CM) for meeting margin requirements.
- Transferring mutual fund units from your demat account upon their sale.
- Transferring your shares in open offers ( ie. buybacks/delisting/acquisitions) on the stock exchange.
Therefore, the entire process of selling and pledging becomes much smoother across asset classes.
How to Set Up DDPI on Angel One?
You can activate DDPI online during the account opening journey itself.
On the page where you are entering your employment type, check the box next to Demat Debit Pledge Instruction (DDPI) and click on ‘NEXT’. Thereafter once your eSign for the Angel One account creation is completed, your DDPI activation process will also be completed.
Fig.1: Activating DDPI during Angel One onboarding.
However, in case you already have an Angel One account, you have to take the following steps to activate your DDPI:
- Download the DDPI activation form from here.
- Fill up and send the signed physical form to our Hyderabad Office via courier.
- It may take up to 48 hours to activate the DDPI after receipt of the DDPI form at the Hyderabad Office, subject to fulfillment of the DDPI Activation requirement.
- Once the DDPI is activated, you will receive an email from the CDSL on your registered email ID.
Note: The address of Angel One’s Hyderabad office is “Angel One LTD., 2nd Floor, Osman Plazza, Road No.1, Banjara Hills, Hyderabad – 500034.”
In case you already have an account, as well as a POA set up already, then you have to also take exactly the same steps mentioned above to activate your DDPI. Once you receive the DDPI activation email from the CDSL, the earlier POA will be discontinued from then onwards.
In case you have DDPI already but you want to opt out of it, send an email to [email protected] from your registered email ID, asking to opt out of the DDPI.
Hope this article gives you clarity on how to activate DDPI and trade hassle-free. If you want to know more about the latest features of the Angel One app and discuss them with fellow Angel One users, join the Angel One Community today!