What are the benefits of DDPI?
Here are the main benefits of DDPI:
1️. No Need for Daily TPIN Authorization
Earlier, investors had to enter CDSL TPIN authorization every time they sold shares. With DDPI, the broker can debit the shares automatically, making the process faster and smoother.
2️. Faster Order Execution
Since there is no extra authorization step, sell orders execute faster, which is useful in fast-moving markets.
3️. Easier Pledging of Shares
DDPI allows your broker to pledge shares directly for margin, making it easier if you trade in F&O or margin trading.
4️. More Secure Than Old POA
DDPI replaced the older Power of Attorney (POA) in stock trading system.It is more restricted, meaning brokers can only:
- Debit shares for selling
- Pledge shares for margin
They cannot misuse it for other transactions.
