Why did I get the "Purchases are blocked as CDSL doesn't allow credit" error on Zerodha Kite?
This rejection message is displayed when buying P or ZP category stocks. These stocks are not listed on CDSL and cannot be delivered to the demat account. See list of P and ZP category stocks.
All Zerodha (Depository participant) demat accounts are maintained with CDSL (Depository). Once the shares are bought, they are delivered to the demat account. If a security isn’t listed on CDSL, it isn’t possible for Zerodha to credit the shares in the demat account, hence buy orders are blocked.