What is CDSL TPIN? How to Buy and Sell shares with TPIN-Based Pre-Authorisation? 

The use of digital technologies for processing accounts online has gotten easier with the rise of technology, mobile banking, and net banking. Digitalization of stock trading is also not uncommon at the moment. Most DPs are looking for ways to make trading easier for their clients. Many new firms have entered the share and stock market business to provide services such as app-based algo trading software and online share market technical analysis. The customers can do all this from a single app or website, which is extremely handy for both investors and brokerage firms. This has also aided in the closure of several loopholes, alleviating some of the bookkeeping tasks. CDSL is the country's most well-known electronic securities depository. The CDSL has developed a TPIN authorization technique to keep Demat account safe and make the process simpler. Continue reading to learn more about what is TPIN.

What is CDSL TPIN?

TPIN means Transaction personal identification number. In stock trading, the CDSL TPIN is very crucial. It's a six-digit password that authorizes the broker to debit the selected stock from the CDSL's Demat account for a period of up to 90 days. A TPIN acts as a PoA (Power Of Attorney) and can thus be considered its alternative.

In June of 2020, the CDSL TPIN was presented for the first time. Using TPIN means consumers get the authority to demat transactions or stock sales from their demat account. Customers receive their CDSL TPIN straight from the CDSL. Customers can also use an OTP obtained on their phone to reset their pin online at any time. When selling stocks, the TPIN is utilized for e-DSL verification. Using a CDSL TPIN protects investors because brokers are unable to tamper with it lawfully at any time.

Why Do You Need CDSL TPIN?

• Removing the limits of the POA makes Demat transactions safer.

• It gives the customer more control over transactions when it comes to authorizing them.

• This PIN is required for every transaction if a client has not submitted the POA to his or her broker.

• Brokers cannot misuse or alter the TPIN CDSL because it is generated and held by the CDSL.

• It eliminates the need for paper in the Demat account opening process.

• In a Demat account, TPIN provides you more control over authorizing transactions. Previously, even if Demat accounts were opened via applications, the POA had to be given to complete the procedure.

When Do You Require Authorization?

You can use the CDSL TPIN to pre-authorize the selling of your stocks at the start of each trading day so you don't have to do it every time you submit a delivery sell order.
After completing the trade before 5:00 p.m. on the day of the deal, you will be required to authorize the debit of the sale transaction. To do so, go to the Holdings page and click on the 'Authorization' option. If you do not authorize the debit after the sale is completed, the transaction will result in a delayed delivery and following auction, as well as a penalty.

A Step-by-Step Guide for CDSL TPIN Generation

• Following are the procedures for CDSL TPIN generation 

• Clicking the generate TPIN link in your profile takes you to the CDSL platform. After that, click Next and provide your 16-digit DEMAT account number and PAN number.

• You will receive an OTP in your registered mobile number. In the field provided, type the OTP. You will receive a TPIN number and an email address after successful authentication. It is important to remember that this is a reusable TPIN number that you will use to authorize the sale of shares.

• The mapping of your TPIN to your CDSL account will take about 6-minutes. Thus, you will be able to generate CDSL TPIN.

How to Use CDSL-TPIN? 

• The customers use TPIN CDSL to authorize the sale of shares that take place from their accounts. Here are the steps that customers can follow to use their CDSL TPIN:

• Visit the stocks Dashboard on your stock broker’s website or mobile application and select the stock that you wish to sell.

• Click on the ‘Verify Sale’ Option in order to place the sale of the selected share.

• Look and click on the ‘Verify using TPIN’ option or you can also request a new TPIN. In case you request a new TPIN then it will take 6 minutes for the TPIN to get activated.

• The user is directed to the CDSL page where he/she is required to enter the TPIN and then verify the same. The customer has received the TPIN either by email or through an SMS.

• Once the TPIN is verified, the user is redirected to the other page on the broker’s website or mobile app where the sale order can be completed.