CDSL authorization refers to the process through which investors are granted access to Demat accounts and electronic holding of securities. CDSL acts as a depository, ensuring the safekeeping and transferability of shares, bonds, mutual funds, and other financial instruments. It provides investors with a unique Demat account number (DP ID) that facilitates seamless transactions and eliminates the need for physical certificates.
To make transactions more secure, last year, CDSL introduced e-DIS verification. e-DIS strands for electronic delivery instruction slip.
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At the time of stock sale, this verification is performed using a TPIN (Transaction Personal Identification Number).
For the sale of stocks, users need TPIN+OTP verification as an additional layer of security. Here's what you need to know:
Central Depository Services Limited introduced the CDSL TPIN to offer an extra degree of security to Demat accounts. It allows investors to authorise activity on their accounts, increasing the overall security of online trading. When you conduct a transaction, such as selling stocks, CDSL generates the One Time Sell Authorisation PIN and sends it to your registered mobile number. The transaction is validated and authorised using this PIN.
CDSL TPIN addresses the need for improved security and seamless trading experiences in the digital era. Previously, the use of Power of Attorney (POA) documents was common for granting authorisation to brokers to sell stocks. However, POA documents required physical signatures, making the process cumbersome and less user-friendly. To overcome these challenges and provide a more reliable and user-centric approach, CDSL introduced the TPIN.
The validity period for CDSL holdings verification has undergone changes. Let's understand how these changes affect you.
The above-mentioned two situations have been explained with an example below.
a. Verifying on Tuesday at 4:00 p.m.: The verification will be valid until 3:30 p.m. on Wednesday, the next trading day's closing time.
b. Verifying on Friday after 3:30 p.m. or during the weekend: The verification will be valid until 3:30 p.m. on Monday, the next trading day's closing time.
It's important to note that the market timings in India are from 9:15 a.m. to 3:30 p.m., except on trading holidays. The verification remained valid for 90 days earlier, but the revised rules have shortened the validity period to the next market closing time.
In case you forget or lose your TPIN, CDSL offers an additional convenience where you can set up your own TPIN. Here's a step-by-step process:
There are two primary methods to verify your holdings:
The introduction of TPIN+OTP verification has added an extra layer of security, ensuring that only authorized individuals can initiate stock sales. Furthermore, the validity of holdings verification has also undergone changes, with the expiration time now being determined by the market closing time. Investors can now set their own TPIN for added convenience and take advantage of the two available methods to verify their holdings.