What is TPIN in Demat Account?

Last Updated: 23 Jan 2025

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.

Why do traders need a CDSL TPIN?

Traders need a CDSL TPIN (Transaction Password Identification Number) for several important reasons:

1. Security: The TPIN adds an extra layer of security to your Demat account. It ensures that only authorized transactions can be made, reducing the risk of unauthorized access or misuse.

2. Authorization: The TPIN allows traders to pre-authorize the sale of their securities. This means you can set up your account to automatically authorize the sale of stocks at the beginning of each trading day, eliminating the need to authorize each transaction individually.

3. Regulatory Compliance: As per CDSL regulations, traders must use the TPIN and OTP (One-Time Password) to authorize the debit of securities from their Demat account for delivery sale transactions. This ensures compliance with regulatory requirements and helps maintain transparency in trading activities.

4. Convenience: Using a TPIN simplifies the process of selling securities. Instead of signing multiple authorizations or dealing with complex procedures, traders can quickly and easily authorize transactions with their TPIN.

5. Protection Against Misuse: The TPIN replaces the traditional Power of Attorney (PoA) given to brokers

Overall, the CDSL TPIN enhances the security, efficiency, and regulatory compliance of trading activities, making it an essential tool for traders.

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.

How Does TPIN Work?

A TPIN, or Transaction Personal Identification Number, is a security feature used in Demat accounts to authorize transactions. What is TPIN in Demat account? It is an extra layer of protection to ensure that only the account holder can authorize trades. To use TPIN, the account holder must first generate TPIN through their depository participant or CDSL’s website. During a transaction, the system prompts for this TPIN along with an OTP sent to the registered mobile number, ensuring the trade’s authenticity. What is TPIN? In essence, it is a secure way to protect and validate your transactions within the Demat account ecosystem.

Importance of TPIN

The importance of a TPIN in a Demat account cannot be overstated. So what is TPIN in Demat account? It is a security feature ensuring that only the account holder authorizes transactions, preventing unauthorized access. When you generate TPIN, you create an extra layer of protection for your securities that enhances account security. The TPIN, along with an OTP, provides double verification, safeguarding your investments from potential misuse. It is an essential tool for maintaining the integrity and safety of your trading activities. By using a TPIN, traders have greater control and peace of mind knowing their transactions are secure.

How to use TPIN for selling shares?

Using a TPIN for selling shares is a straightforward process that ensures secure transactions. What is TPIN? It stands for Transaction Personal Identification Number and is a security feature for authorizing trades in your Demat account. Here’s how to use it:

1. Generate TPIN: First, you need to generate TPIN through your Depository Participant (DP) or via CDSL’s website. This will link the TPIN to your Demat account.
2. Initiate Sale: Log in to your trading platform and select the shares you wish to sell. Proceed to the authorization step.
3. Enter TPIN: You will be prompted to enter your TPIN. What is TPIN in Demat account? It is an extra layer of security for authenticating the transaction.
4. OTP Verification: After entering the TPIN, an OTP will be sent to your registered mobile number. Enter this OTP to complete the transaction authorization.
5. Execute Sale: Once verified, you can proceed with executing the sale of your shares.

What is TPIN? It ensures that only you can authorize the sale of shares, adding a layer of security and preventing unauthorized access. By using the TPIN, you maintain control over your Demat account, making the trading process secure and efficient.

Benefits Of Having A CDSL 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.

How to change TPIN?

Changing your TPIN (Transaction Personal Identification Number) in your Demat account is crucial for maintaining security. What is TPIN in Demat account? It’s a unique code used to authorize transactions. To change your TPIN, follow these steps:

1. Login: Access your Demat account through your Depository Participant (DP) or CDSL’s official website. Ensure you are logged into the correct account.
2. Navigate to TPIN Settings: Find the section for security settings or TPIN management. It’s essential to know what is TPIN and where to locate the settings in your account interface.
3. Generate New TPIN: Select the option to change or generate a new TPIN. Follow the prompts provided. Typically, this involves verifying your identity through OTP sent to your registered mobile number.
4. Enter New TPIN: Once you receive the OTP, enter it and proceed to set your new TPIN. Make sure it’s unique and not easily guessable.
5. Confirm Changes: After entering your new TPIN, confirm the changes. You might be asked to re-enter it for verification.
6. Notification: You will receive a confirmation message once the TPIN is successfully changed. What is TPIN? This change ensures enhanced security and better protection for your account.

Generate TPIN promptly to keep your account secure. Changing your TPIN regularly, understanding what is TPIN in Demat account, and staying vigilant helps protect your investments from unauthorized access and misuse.

Conclusion

TPIN is a security system that is in the form of a 6 digit code which is provided upon opening of Demat account. It is the new way to keep transactions secured ensuring no unwanted debits are made from your account. An individual can get a new TPIN code by logging online over the CDSL website.

Frequently Asked Questions

How to reset TPIN?

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.

Do I need TPIN to buy shares?

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.

Do I have to sign Power of Attorney (POA) to get TPIN?

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.

How to use TPIN?

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.

What is the TPIN number?

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.

Can I change my TPIN?

ertainly, all you would need to do is contact your broker or depository participant to change the TPIN.

What happens if anyone else has access to your TPIN?

If you believe that someone has access to your TPIN, then consider changing your TPIN to rest assured of any unauthorized transactions.

How does TPIN help with transactions over the phone?

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.

How is a TPIN different from a regular password?

A TPIN stands for Transaction Personal Identification Number. It is a unique code that is used specifically for authorizing stock transactions, while a regular password is used for general account access. TPIN adds an extra layer of security for trading activities.

Can I sell shares without entering the CDSL TPIN?

Yes, you can sell shares without entering the CDSL TPIN. You can do this by submitting a Demat Debit and Pledge Instruction (DDPI). This allows your broker to debit shares from your account without needing the TPIN for each transaction.