TPIN stands for Transaction Personal Identification Number, a special four-digit number used to approve transactions in a Demat account.
TPIN has come in prominence after SEBI expressed reservations about the erstwhile system of giving a signed power of attorney or POA to the broker to debit shares from the demat account against stock deliveries. One of the solutions is to use the TPIN system to authorize the debit of shares to the demat account. CDSL first introduced this TPIN methodology to authorize the debit of shares from the demat account of an investor, without giving power of attorney to the broker.
What is TPIN?
The CDSL TPIN is essentially a 6-digit password which authorizes the broker to debit the selected stocks from the demat account of the holder having demat account with CDSL and also doubles up as an alternate to the demat power of attorney. Investors can how directly get the TPIN from CDSL and authorize the sale of shares online from their demat account without the broker or depository participant coming in between.
TPIN is a kind of password that effectively authorizes the debit of shares from your demat account without giving power of attorney. This methodology is simpler and also more transparent and immediate as it is done online. The TPIN authorization is valid for one day and only for the specific stocks for which the TPIN is given.
TPIN came into being only in June 2020 to help traders to use the TPIN and authorize demat debits in a smooth and seamless manner. Even though your demat account is with the DP, the shares rest with CDSL / NSDL and you can use the TPIN to directly authorize debits.
The TPIN is issued by CDSL directly to customers. There is also a provision to set a new TPIN, modify the existing TPIN, reset the TPIN facility entirely and also retrieve your TPIN through a specified link if you forgot the TPIN. In case you are using the online trading service, the TPIN will be available in the trading platform as a third party service and you can hook on to the TPIN service from the trading platform itself. That makes TPIN more flexible.
With the TPIN facility available, no movement of shares out of your demat account can happen without your specific approval. TPIN gives you safety, security, confidence and also the freedom to have full control over your demat account from anywhere at any time.
How to generate TPIN?
Let us now look at the all-important TPIN Number generation process. CDSL TPIN Generation. You can generate the CDSL TPIN online on the CDSL website in a jiffy.
First, you click on the “Generate eDIS TPIN” link and enter your 16-digit Beneficiary Owner (BO) ID. You also have to input the correct PAN number so you received an OTP (one time password) on your registered mobile. Once you enter the OTP correctly, the 6-digit TPIN number is generated and sent to you via SMS and email.
The TPIN being a six-digit number can get lost, misplaced or you may forget it. It is always better not to use very obvious TPIN numbers like birthday, anniversary etc. But you can change the TPIN to a 6 digit you can remember easily. Also, if you forgot the TPIN, you can just regenerate the TPIN by going through the same process all over again. It is actually quite simple and you can complete the same in about 5-10 minutes flat.
Benefits of TPIN
The TPIN is your safe alternative to giving power of attorney to the broker to debit shares from your demat account. This is a 6-digit number that is sent to you when the demat account tis opened. Of course, this sending TPIN at the time of opening account is a recent phenomenon. In case of old demat account, you can generate fresh TPIN online on the website of CDSL. Here is why it is critical to use TPIN to authorize demat debits.
- The CDSL TPIN actually eliminates need to give Power of Attorney or signed DIS and makes the demat transactions safer, more secure and also flexible.
- TPIN method gives greater control to the demat account holder to authorize the transactions in a demat account. This can vastly prevent misuse.
- TPIN has emerged as a veritable alternative to giving POA to broker and is mandatory for every demat withdrawal transaction from your demat account.
- CDSL, which is a government sponsored agency, manages the entire TPIN process and it is between you and the CDSL. You can transact in a safer and more flexible environment.
- TPIN eliminates need for POA so it makes the entire demat account process paperless. Earlier, the POA had to physically filled, signed and dispatched, but not any longer.
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Frequently Asked Questions
Resetting the TPIN is a simple process and is almost the same as getting a new PIN number. You just need to click on the Reset TPIN / Forgot TPIN link on the CDSL link and you will be taken to a page asking for your BO-ID and your PAN. Once you enter the right details, the system will sent you a one-time password or OTP to your mobile and email. Once you enter the OTP, the TPIN gets reset and the new TPIN will be sent to you electronically. Once you reset the TPIN, you can go into the CDSL website link and change to a number that you can remember easily. It is advisable to change your TPIN at regular intervals in the interest of your own safety and security.
Today, you don’t need TPIN to buy shares. These shares once bought and paid for will automatically get credited to your demat account on T+2 day. Even normally, your credits to the demat account are pre-authorized when you sign the client agreement. It is only the debits to your demat account that need to specifically authorized with signed debit instruction slips (DIS) or generally authorized with power of attorney given to the broker to debit shares against stock payables. Now, TPIN is a substitute for signing a POA with the broker wherein you can use the TPIN to directly authorize debits to your demat account using the TPIN authorization.
No, there is no power of attorney required for TPIN. The TPIN is sent along with your account opening or if you don’t have a PIN, you can generate fresh TPIN with the help of your BO ID and PAN number. Just ensured that the mobile is correctly mapped to the PAN and demat account as the TPIN will be sent on the mobile for authorization purposes.
Here are some basic facts about using and managing TPIN by the customer.
- The TPIN number is generated by the customer from CDSL and the broker is not involved.
- The 6 digit TPIN number authorizes debit transactions which will be valid for 24 hours.
- Such authorization can be cancelled at any time and you can even go and check the status of the authorization in the trading application.
- In case you forget or misplace the TPIN, you can regenerate TPIN with basic levels of authorization. It can be generated in just a few seconds.
The TPIN number is a safe alternative to granting the broker the power to debit shares from your demat account. It is a six-digit number that is sent to you when the demat account is opened.
ertainly, all you would need to do is contact your broker or depository participant to change the TPIN.
If you believe that someone has access to your TPIN, then consider changing your TPIN to rest assured of any unauthorized transactions.
TPIN provides the investors with an additional layer of security during the transaction over the phone. It makes sure that only authorized people can place orders or make any changes to their accounts.