What is POA/DDPI and how to activate it?

Full form of POA is Power of Attorney. A POA is a document that allows a broker to debit shares from the client's demat account and deliver them to the exchange in case of a sell transaction. POA was done offline in paper form with a seal and sign on stamp paper.

However, a few brokers started misusing POA, like debiting shares without any sell trade. Also, the procurement of physical stamp paper comes with its own challenges.

Therefore, to solve these issues, SEBI has introduced a new concept called DDPI (Demat Debit and Pledge Instruction). DDPI came into effect on 15th November 2022 and completely replaced POA. The key difference between DDPI and POA are as follows:

1. DDPI was entirely online, making the brokers and client process hassle-free, whereas POA was an offline process.
2. DDPI is only limited to the transfer of shares held in a demat account of the client in case of a sell transaction, whereas POA allows the broker to debit shares for any reason.
3. DDPI is also used to pledge/ re-pledge shares in favor of trading member/ clearing member for meeting the client's margin requirement
4. For debiting shares from the demat account when the client participates in tender offer such as buyback/ delisting/ takeover and debiting mutual funds from the demat account on the sale transaction.

However, nothing will change for the clients who have already signed POA because POA will automatically be converted into DDPI. But, If you are a new client or an old client who didn’t sign POA, you can activate your DDPI by following the steps below:

• visit https://adityatrading.in/
• Log in by entering your phone number followed by OTP.
• Go to the menu bar (Top-right corner) and click on Profile.

• Under the “Activate POA/DDPI” Tab, click on proceed.
• It will redirect you to the Digio site. Enter the mobile OTP.
• Check the E-form of DDPI and click Sign now button.

• Now, you will be redirected to the NSDL site. Enter your Aadhaar number followed by your aadhaar OTP.
• Now the process of DDPI is completed and a congratulatory message will appear on your screen.