CDSL TPIN

CDSL 6 digit TPIN is a password that authorizes a broker to withdraw shares from the customer's Demat account. The authorization is valid for one day for the selected stocks for which it is given.

CDSL TPIN was introduced in June 2020 as an alternate to the Power of Attorney (PoA) given to the broker. CDSL customer no more has to sign the PoA to trade online, which was mandatory earlier.

Central Depository Services (India) Ltd (CDSL) is one of the two government-approved depositories. CDSL holds the demat account and securities in it. Stock brokers are CDSL members as depository participants (DP). They work as intermediaries between the customer and CDSL to service the demat account.

CDSL issues the TPIN directly to the customer. It also provides the facility to reset the pin online at any time with an OTP on phone.

CDSL also manages the list of authorized securities for a customer. This makes it safe as brokers cannot temper with it illegally. All stock brokers use CDSL TPIN as a 3^rd party service in their trading software.

Why CDSL TPIN Required?

Before the introduction of CDSL TPIN, stock brokers would ask you to sign a Power of Attorney at the time of account opening. Its limited PoA authorizes them to debit the securities from your demat account when you sell them.

In a few cases, the regulators found brokers misusing the PoA for their own benefits. This includes:

• Withdrawal of securities even when customers didn't sell them.
• Moving the shares to and from customer demat account to the broker pool account without customer consents.
• Using the PoA to scare the customers to pay the credit (negative) to the broker from trading losses.

Depositories tried to handle the misuse by sending Email and SMS alerts for every demat transactions but that didn't help much.

On June 1, 2020, CDSL introduced the TPIN facility. The TPIN is an additional password that allows the customer to authorize the demat transaction. The TPIN is stored in the CDSL database which makes it safe from brokers misusing it.

CDSL TPIN Facts

• It is created and managed by CDSL. The broker is not involved in managing it.
• It's a 6 digit number which can be reset anytime.
• The authorization remains for one day.
• The authorization can be cancelled at any time.
• You can check the authorization status in the trading application.
• A new TPIN can be generated from the CDSL website in just a few seconds.

CDSL TPIN Benefits

• CDSL TPIN makes the demat transactions safer by eliminating the need for PoA for the Demat account.
• TPIN gives better control over authorizing the transaction in a demat account.
• TPIN is required for every demat withdrawal transaction if you don't have PoA to the broker.
• CDSL managers the TPIN. This means brokers cannot manipulate or misuse it.
• It makes the demat account opening process completely paperless. Earlier PoA was the only paper form to be filled and signed.

Zerodha CDSL TPIN Demo

Zerodha CDSL TPIN is a password or OTP provided by CDSL to authorize Zerodha to withdraw shares from the customer's demat account on behalf of the customer for online sell transactions. The PIN offers additional security to your demat account. Zerodha cannot withdraw shares from your demat account without you permit them to do this by using the TPIN or you have to provide Power of Attorney to them.

CDSL TPIN Validity

Once you receive the CDSL TPIN on your registered mobile number and email id, it works like a password to authorize your holdings.

Once you authorize the stock for debit with CDSL using TPIN, the authorizations remain valid for one day. This means you have to re-authorize the stock with CDSL TPIN in case the sell transaction didn't complete on the same day.

CDSL TPIN Generation

A new CDSL T-PIN can be generated online on CDSL official website at any time in just a few seconds.

Steps to generate CDSL TPIN

1. Visit CDSL website (cdslindia.com)

2. Click on the 'Generate- eDIS TPIN' link available on right side

   

3. Enter your BO ID (16 digits Demat Account Number)

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

   

5. Enter OTP received on email or mobile.

   

6. Receive TPIN in SMS and email as 'Your Generated TPIN code is 113211'

   

CDSL TPIN Change (Reset TPIN)

The CDSL TPIN can be changed or reset online on CDSL official website at any time in just a few seconds. The process is similar to generate a new pin.

Steps to change CDSL TPIN

1. Visit CDSL website (cdslindia.com)
2. Click on the 'Change - eDIS TPIN' link available on right side
3. Enter your BO ID (16 digits Demat Account Number)
4. Enter PAN Number and click the 'Next' button
5. Enter OTP received on email or mobile.
6. Receive TPIN in SMS and email as 'Your Generated TPIN code is 113211'

Answered on 2021-05-13