Why did I get the "Purchases are blocked as CDSL doesn't allow credit" error on Zerodha Kite?
Rejection Message: Purchases are blocked for this security as CDSL doesn't allow credit to your demat account.
Once you buy shares, they are delivered to your demat account. A demat account is maintained by your depository participant (Zerodha) with your depository (CDSL). There are two depositories in India - NSDL & CDSL. All Zerodha demat accounts are maintained with CDSL.
You will get the above rejection message if you're trying to buy P or ZP category stocks. These stocks are not listed on CDSL and cannot be delivered to your demat account.