Home/Blogs/What is the Validity of My CDSL Authorization

What is the Validity of My CDSL Authorization

What Is CDSL Authorisation? 

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.

TPIN+OTP Verification

To make transactions more secure, last year, CDSL introduced e-DIS verification. e-DIS strands for electronic delivery instruction slip. 

Open Your free Demat Account in just 5 minutes!

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:

  1. TPIN Generation: If you don't have a TPIN, you can generate one to facilitate verification.
  2. OTP Authentication: Alongside your TPIN, you will be required to enter an OTP (OneTime Password) to complete the verification process and initiate the selling of stocks.

What Is CDSL TPIN? 

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.

What Is The Need For CDSL TPIN?

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.

Changes In Holdings Verification Validity

The validity period for CDSL holdings verification has undergone changes. Let's understand how these changes affect you.

  1. Verification During Market Hours: If you check your holdings while the market is open, the verification will only be valid until the end of the trading day. For example, if you check your holdings at 10:00 a.m., the verification will expire at 3:30 p.m. on the same day.
  2. Verification After Market Closure: If you check your holdings after the market has closed, the verification will remain valid until the end of the next trading day.

Explaining With An Example

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.

How to Set Your Own TPIN?

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:

  1. Access your dashboard and locate the option for setting your TPIN.
  2. Follow the instructions and provide the required information to set your own TPIN.

How To Verify Your Holdings?

There are two primary methods to verify your holdings:

  1. Dashboard Verification: Access your dashboard and click on the "Verify Holdings" option. Follow the prompts and instructions to complete the verification process.
  2. Verification during Sell Order Placement: If you haven't verified your holdings prior to placing a sell order, the system will prompt you to do so to complete the transaction successfully.

Final Words 

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.

 

Related Articles: A Step By Step Guide to Registering with CDSL Easiest | What is the Difference Between NSDL and CDSL | What Is The Procedure For Selling Shares In An NSDL Demat Account

You may also like…

Be the first to read our new blogs

Intelligent investment insights delivered to your inbox, for Free, daily!

Open Demat Account
I wish to talk in South Indian language
By proceeding you’re agree to our T&C