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Market Intelligence › Basic Terminologies
The difference between the old power of attorney and the new DDPI, and why it changed
Published by The Retail Trader · JUL 24, 2026 · Compliance & Regulation
To sell shares you need an authorisation to take shares out of the demat. Earlier this was done through a broad power of attorney. Now a very limited document has taken its place, and this change is in your favour.
A POA was a wide permission that gave the broker the authority to operate the demat account. Its scope was often much larger than needed, and in some cases it was misused.
That is why DDPI came — demat debit and pledge instruction — which is meant for only two jobs: giving shares for a settlement obligation and pledging margin.
These four points are practical:
• Giving a DDPI is not compulsory — you can sell without it too, using TPIN and OTP.
• The scope of DDPI is limited, so it is safer than a POA.
• Before signing any authorisation, it is necessary to read its scope.
• An old POA can be got revoked.
If you do not trade much, the TPIN route is enough — an OTP on every sell is a small inconvenience, but that inconvenience is your control. This is an honest trade off between convenience and control.
This article is for educational purposes only — it is not a buy or sell recommendation, it makes no claim of guaranteed returns, and it is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.