Professional Documents
Culture Documents
SEBI Circular
SEBI Circular
To,
All Depositories
All Recognised Stock Exchanges
Dear Sir/Madam,
Sub: Execution of ‘Demat Debit and Pledge Instruction’ (DDPI) for transfer of
securities towards deliveries / settlement obligations and pledging / re-
pledging of securities - Clarification
3. Accordingly, the following amendments are being made to the said Circular:
3.1. Para 3 shall stand modified as under:
“In order to make the process more transparent and simpler, the following
conditions shall be made part of a separate document viz. ‘Demat Debit and
Pledge Instruction’ (DDPI) (Annexure-A):
3.1.1. Transfer of securities held in the beneficial owner accounts of the client
towards Stock Exchange related deliveries / settlement obligations
arising out of trades executed by clients on the Stock Exchange through
the same stock broker.
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3.1.2. Pledging / re-pledging of securities in favour of trading member (TM) /
clearing member (CM) for the purpose of meeting margin requirements
of the clients in connection with the trades executed by the clients on
the Stock Exchange.
3.1.4. Tendering shares in open offers which shall be in compliance with SEBI
circular SEBI/HO/CFD/DCR-III/CIR/P/2021/615 dated August 13, 2021
or any other circular which may be issued in this regard.
The DDPI shall serve the same purpose of PoA and significantly mitigate the
misuse of PoA. The use of DDPI shall be limited only for the purposes as
mentioned in paragraphs 3.1.1, 3.1.2, 3.1.3 and 3.1.4.”
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9.1 Paragraphs 4.2.1 and 4.2.2 of SEBI circular no.
SEBI/HO/MIRSD/DOP/CIR/P/2020/158 dated August 27, 2020, and
Paragraphs 1(i) and 1(ii) of Annexure to the SEBI circular no.
CIR/MRD/DMS/13/2010 dated April 23, 2010, with effect from
September 1, 2022.
9.2 Paragraph 1 (iii) to the extent applicable for Mutual Fund transactions
and tendering shares in open offers, of Annexure to the SEBI circular no.
CIR/MRD/DMS/13/2010 dated April 23, 2010, with effect from November
18, 2022.”
4. Annexure-A of the SEBI circular dated April 04, 2022 is modified to the extent of
para 3.1 above. All other provisions specified in SEBI circular dated April 04, 2022
shall continue to remain applicable.
7. This circular is issued in exercise of the powers conferred under Section 11(1) of
the Securities and Exchange Board of India Act, 1992 and Section 19 of the
Depositories Act, 1996, to protect the interests of investors in securities and to
promote the development of and to regulate the securities markets.
Yours faithfully
Aradhana Verma
Deputy General Manager
Tel. No: 022 26449633
[email protected]
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Annexure-A
* the same may be signed physically against each purpose of DDPI. The same may
also be eSigned. In case of eSign, client shall be given an option for choosing the
specific purpose(s) of DDPI.
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