DEMAT DEBIT AND PLEDGE INSTRUCTION

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DEMAT DEBIT AND PLEDGE INSTRUCTION (DDPI) – TERMS & CONDITIONS

These Terms and Conditions govern the access to and use of the Demat Debit and Pledge Instruction (“DDPI”) facility provided by GuruStox LIMITED (“GuruStox” or “Company”) to its clients (“Client”).

By opting for DDPI in favour of the Trading Member (TM) / Clearing Member (CM), the Client agrees to the following terms and conditions.

1. PURPOSE OF DDPI

DDPI is a limited-purpose authorization provided voluntarily by the Client to GuruStox for operating the Client’s Demat account only for specific activities permitted under applicable regulations issued by SEBI, Stock Exchanges, Depositories, and Clearing Corporations.

2. PERMITTED TRANSACTIONS

Under DDPI, GuruStox is authorized to perform the following actions on behalf of the Client:

a) Debit securities from the Client’s Demat account towards settlement obligations arising from trades executed through GuruStox.

b) Create pledge or re-pledge of securities for margin, collateral, or settlement obligations in favor of Trading Member, Clearing Member, or Clearing Corporation.

c) Tender securities for:

  • Buyback offers
  • Open offers
  • Delisting offers
  • Takeover offers
  • Other corporate actions permitted under applicable regulations.

d) Debit Mutual Fund units and Exchange Traded Fund (ETF) units held in dematerialized form for transactions executed through stock exchange platforms.

3. VOLUNTARY AUTHORIZATION

Submission of DDPI is completely voluntary. Clients may alternatively choose TPIN and OTP-based authorization mechanisms for delivery of securities.

Choosing not to execute DDPI shall not restrict the Client from operating the trading or Demat account.

4. LIMITED AUTHORITY

The DDPI granted to GuruStox is strictly limited to the purposes specified herein.

GuruStox shall not:

  • Transfer securities for unauthorized purposes;
  • Operate the Client’s bank account;
  • Withdraw funds from the Client’s account;
  • Sell or pledge securities without valid trading or margin obligations.

5. CLIENT CONSENT

By accepting DDPI electronically or physically, the Client confirms that:

  • The authorization has been read and understood;
  • The Client is voluntarily providing consent;
  • The Client authorizes GuruStox to act strictly within the defined DDPI scope.

6. PLEDGE AND MARGIN OBLIGATIONS

Securities pledged under DDPI shall remain in the Client’s Demat account unless invocation occurs in accordance with applicable regulations.

The Client acknowledges that pledged securities may be used for margin and settlement obligations related to trades executed by the Client.

7. SECURITY AND COMPLIANCE

GuruStox shall maintain appropriate systems, controls, and audit trails in compliance with applicable SEBI, Depository, and Exchange regulations.

All transactions executed under DDPI shall be recorded and may be made available to regulatory authorities as required by law.

8. REVOCATION OF DDPI

The Client may revoke DDPI at any time by submitting a written or electronic revocation request in the format prescribed by GuruStox.

Revocation shall become effective subject to:

  • Verification by GuruStox;
  • Clearance of outstanding obligations, if any.

9. VALIDITY

DDPI shall remain valid until:

  • Revoked by the Client;

  • Closure of the trading or Demat account;
  • Termination under applicable laws or regulations.

10. REGULATORY GOVERNANCE

These Terms & Conditions shall be governed by:

  • SEBI regulations and circulars;
  • Rules and bye-laws of Stock Exchanges;
  • Regulations of NSDL and CDSL;
  • Applicable laws of India.

Any amendment required pursuant to regulatory changes shall automatically apply and become binding on the Client.

11. LIMITATION OF LIABILITY

GuruStox shall not be liable for:

  • Delays caused by depositories, exchanges, banks, or clearing corporations;
  • System interruptions beyond reasonable control;
  • Transactions executed based on valid Client instructions and DDPI authorization.

12. CLIENT ACKNOWLEDGEMENT

By opting for DDPI, the Client acknowledges and agrees that:

  • DDPI is executed voluntarily;
  • The authorization scope is understood;
  • GuruStox may debit or pledge securities only for permitted transactions;
  • The Client retains ownership rights over securities except as permitted under applicable regulations.