What is CDSL TPIN and How to Buy and Sell Shares Using TPIN?

Central Depository Services Limited (CDSL) has introduced the CDSL TPIN on 1st June 2020. The CDSL TPIN authorization method has been introduced to improve the security of your demat account and to make the entire share trading process smoother for you.

In this article, we will take a look at what is TPIN and how to generate and use CDSL TPIN to buy and sell shares. So keep reading to find out!

What is TPIN?

TPIN serves as an alternative to the Demat Power of Attorney (POA). Earlier, CDSL customers had to mandatorily sign the POA to trade online and give it to the brokers. TPIN was introduced to prevent brokers from misusing the POA.

Similar to POA, TPIN authorizes a broker to withdraw shares from a customer’s demat account. It is a 6 digit password that authorizes a broker to debit the chosen stocks from the demat account with CDSL. The authorization is valid only for one day and for the selected stocks for which it is given. You can cancel the authorization anytime you wish. You can even check the authorization status in your respective trading application. 

Thus CDSL TPIN is created, managed and stored by CDSL. It issues the TPIN directly to the customers. CDSL TPIN is valid for 90 days after which, you need to reset it. You can reset the pin online at any time via an OTP received on your phone.

Benefits of CDSL TPIN

CDSL has taken the digitization of demat accounts one step further by introducing TPIN. Some of the key benefits of CDSL TPIN are as follows:

·         It gives better control to customers when authorizing transactions in a demat account.

·         The CDSL TPIN is generated, managed and stored by the CDSL, therefore, brokers cannot misuse it.

·         It eliminates the limitations of the POA thus making the demat transactions safer for customers.

·         TPIN is required for every demat withdrawal transaction in case you don't provide a POA to the broker.

·         It provides an extra layer of security on virtual demat accounts operations.

·         It facilitates a paperless demat account opening process.

·         It uses a unique one-time sell authorization pin sent on your mobile via CDSL to validate the transaction.

How to Generate the CDSL TPIN?

In order to sell stocks, you will need to first generate a TPIN. Here is how you can generate the CDSL TPIN.

1.     Visit the CDSL website – www.cdslindia.com

2.     Click on the 'Generate - eDIS TPIN' tab on the right side of the screen

3.     Enter your BO ID (i.e. 16 digits demat account number)

4.     Enter PAN number and click the 'Next' button

5.     On successfully entering the details, you will be redirected to another screen where you will have to enter OTP received on email or registered mobile number.

6.     On successful validation, TPIN will be sent to your registered mobile number and email from edis@cdslindia.com.

Note: Remember this PIN as it will be required to authorize transactions.

How to Reset CDSL TPIN?

You can reset the CDSL TPIN online on the CDSL website in case you have forgotten it or for security purposes. The process to generate a new pin is very simple and takes just a few seconds. Here are the steps to follow to change CDSL TPIN.

1.     Visit the CDSL website – www.cdslindia.com

2.     Click on the 'Change - eDIS TPIN' tab on the right side of the screen

3.     Enter your BO ID (i.e. 16 digits demat account number)

4.     Enter PAN Number and click the 'Next' button

5.     On successfully entering the details, you will be redirected to another screen where you will have to enter OTP received on email or registered mobile number.

6.     On successful validation, TPIN will be sent to your registered mobile number and email from edis@cdslindia.com.

How to Use CDSL TPIN?

If you are wondering how to use CDSL TPIN, here are the steps to follow:

1.     Log on to your stock brokers website or mobile application and visit the stocks dashboard section.

2.     Select the stock you wish to sell.

3.     Click on the ‘Verify Sale’ tab to place the sale order.

4.     Click on the ‘Verify using TPIN’ tab or request for a new TPIN. Please note that the new TPIN takes 6 minutes to get activated.

5.     Now you will be redirected to the CDSL website where you will have to enter the TPIN and then verify it.

6.     You will receive the TPIN on your registered mobile number and email.

7.     On successful TPIN verification, you will be redirected back to your broker’s website or mobile application where you can complete your sale order.

End Note

TPIN authorization is a big step towards the security aspect of online transactions. Hope this article answered all your questions regarding CDSL TPIN.

Get in touch with Indira Securities to open a demat account for a hassle-free trading journey.