Knowledge Base

DDPI is a digital permission that you give to Samco so your shares can be sold or pledged without you having to approve every time manually. Earlier, brokers used a POA (Power of Attorney) for this. SEBI has now replaced it with DDPI because it is safer, more secure, and fully controlled by you.

By submitting DDPI, you authorize Samco for the following:

1. Debit of Securities for Settlement Obligations: Transfer of securities held in your Demat account towards stock exchange-related deliveries or settlement obligations arising from trades executed by you.
   
2. Pledging / Re-Pledging of Securities for Margin: Pledging or re-pledging securities in favour of the Samco Securities to meet margin requirements for trades executed on the exchange.
   
3. Mutual Fund Transactions via Exchange Platforms: Execution of mutual fund transactions placed through stock exchange order entry platforms.
   
4. Tendering Shares in Open Offers: Submission of shares in open offers through stock exchange platforms.

Simple example to understand DDPI

Think of your Demat account like a locker that holds your shares.

• Without DDPI → Every time you want to remove something from the locker, you must go there and unlock it yourself.
• With DDPI → You give Samco a one-time key that only works when you place a sell order or ask to pledge shares.

So if you sell 10 shares today, DDPI lets Samco take only those exact 10 shares from your locker automatically, nothing else.

This makes your trades happen smoothly and on time, without repeated approvals.