During the Lok Sabha election result meltdown, several Kite users could not generate T-PIN for their selling orders. However, not everyone knows there’s a way to sell stocks without generating the OTP every time one places a sell order. All one has to do is submit the Demat Debit and Pledge Instruction through the app’s web version.
ALSO SEE: Best Redmagic Gaming Mobile Phones Price List 2024
What Is CDLS T-PIN, And Why Do You Need To Generate It?
First and foremost, CDLS T-PIN stands for Central Depository Services Limited Transaction Personal Identification Number. It is a six-digit code that allows investors to authorize stockbrokers to sell/debit stocks from their Demat account.
Per Zerodha’s official support page, “non-DDPI/POA customers must utilize the CDSL T-PIN and OTP to authorize the debit of securities from their Demat account for delivery sale transactions.” While it adds security by allowing users to verify their selling transactions by entering the required OTP, it also implies that investors need to pre-authorize the sale of their stocks in advance.
ALSO SEE: Stereo Speakers Price List
Why Is Generating T-Pin Troublesome For Certain Investors?
If users wish to immediately sell their stocks, based on a current development or news, they can’t do it until the next minute or so since that is roughly the time it takes to enter user ID, PAN Card number, generate an OTP, and then the T-PIN that unlocks sell transactions. Further, if there are too many verification requests at the moment, there’s a chance that the T-PIN won’t reach the users due to server error or delays.
What is Demat Debit And Pledge Instruction?
Hence, if you’re an active investor/trader who frequently sells shares, then relying on the CDLS T-PIN verification might not be the best option. Instead, you should submit the Demat Debit and Pledge Instruction (DDPI). This document allows brokers to debit securities from your account and deliver them to the stock exchange without generating a T-PIN.
The advantages of submitting a Demat Debit and Pledge Instruction (DDPI) include faster and easier selling of shares, as the broker can debit them from the sell order itself. This way, the document streamlines the trade settlement process, making it more convenient for the investor.
ALSO SEE: Automatic Cars Under ₹8 Lakh
How To Submit Demat Debit And Pledge Instruction On Zerodha Kite?
Here’s how you can authorize the debit of shares from your demat account for once and for all by submitting the Demat Debit and Pledge Instruction (DDPI).
- Open Zerodha Kite on your smartphone.
- Before you proceed with the steps to enable DDPI on your Zerodha account, you must have a balance of Rs. 100 (plus 18 percent GST on the amount).
- Go to your profile. It’s at the bottom right corner of the screen, depicted by the User ID.
- Scroll down and tap the Portfolio option. The app will redirect you to “console.zerodha.com,” which showcases a summary of your investment portfolio.
- Now, hit the three-line menu in the top right corner.
- On the following menu, select My Account.
- Select the blue-colored arrow toward the left, and from the menu that appears, choose Demat.
- Scroll down on the following page and select “Enable demat Debit and Pledge Instruction (DDPI).”
- The following message appears on the screen: “I accept that DDPI will allow Zerodha to debit the security from my demat account and deliver them to the exchange without the CDSL T-PIN and OTP to sell shares.” Tick the box next to the message and hit Continue at the bottom.
- At this step, Kite will inform you about the Rs. 100 + GST charge is required to enable D and the use of a public ID verificationism or e-sign.
- On the following screen, click on Proceed and then on Sign Now.
- Enter the Aadhaar number to verify yourself, click on Send OTP, and enter the one-time verification code. Once done, hit the Verify & Sign button.
You can follow Smartprix on Twitter, Facebook, Instagram, and Google News. Visit smartprix.com for the latest tech and auto news, reviews, and guides.
