CDSL T-PIN: How To Buy & Sell Shares With T-PIN Based Pre-authorization?
The era of digitalization and the rising demand for everything virtual has made the youth believe in the power of virtual platforms. Not only online food orders or shopping but now we have online platforms to invest in. The stocks are available and the investors too. This has made stock investment easier and accessible to everyone.
Not only this various companies and organizations are there to guide you with stock and crypto-related stuff. One single platform that gives both knowledge and ideas where to invest in, analysis of the market in the matter of tap. Various old and new websites, investors are putting ideas and encouraging people to invest. This digitization has actually made life easier for all of us. Book-keeping records, to holding on to the stocks for years has been an easy task.
One of the important electronic depositories of securities of India is CDSL. To have more improved securities of the Demat account and make the procedure simpler for all the traders and investors CDSL T-PIN authorization method is used. Further digging in will get to know how CDSL T-PIN helps in improvement? How does the T-PIN generation work?
What is a CDSL T-PIN?
Central Depository Services Limited (CDSL) has initiated digitalization of the Demat account to a greater extent by the involvement of T-PIN. This introduction of CDSL T-PIN will give more privacy and security to investors with their accounts in their pockets. A layer of protection is present due to this authorization to the investor’s Demat account in a virtual platform. This has a new and confidential One time Sell Authorization pin which is sent to your registered number through CDSL to validate the transaction occurred. Such pins are generated by CDSL and sent to your number.
What Is The Need For CDSL T-PIN?
If you are planning to make a Demat account, you need a trading account as well for trading in the stock market. The authority to buy or sell orders with BSE and NSE is given when you make a Demat account with a broker house. After the account is made, CDSL registers the information to itself. When you place an order, you get the stock virtually through the broker to your Demat account.
This digitalization of stock buying and selling made people raise questions against its security. This is when the broker house introduces POA, Power Of Attorney. This Attorney has the authority given to the broker house to sell stock the stock.
The only problem with POA is that you have to sign it on paper. Even the whole process from making a Demat account to selling or buying the stock is e-signed, but the POA signature should be done on papers under the IT Act. After the papers are signed, you have to send them to the broking house to start the stock process. This can be a huge turn-off for providing a seamless, and user-ease process.
Now, this was not so popular and demanding process, so the POA was removed and the T-PIN system was introduced. T-PIN makes the system reliable and gives a lot more control to the Demat account.
When is the Authorization Required?
CDSL introduces T-PIN to make the process easier and secure. The Demat holder has the authority over the transaction. The sell transaction will only be started once you put the T-PIN first. Once the CDSL checks the information and validates you as the authorized user, the following trading process can proceed.
The “Authorize Now” button pops up when you initiate the selling process. Once you click on the following button, you will automatically be sent to the CDSL portal. Now is the time to enter CDSL T-PIN.
This T-PIN pin is also used for the following cases:
- Modify sell order from Intraday to delivery.
- Modifying sell order to get intraday shares to the Delivery account.
- To receive margin benefits on the stocks.
These are the cases for which you have to authorize CDSL T-PIN. This CDSL T-PIN makes the user’s experience trading more accurate and reliable. Security to the investor through the app or website.
Generating CDSL T-PIN: Step-by-step guide.
To perform sell transactions online for the stock market, it is mandatory to have a CDSL T-PIN. For generating T-PIN, you have to generate T-PIN for your Demat account. To sell stock online, you have to generate the T-PIN first using the following procedure:
- The T-PIN link will be seen in the profile, which takes you to the CDSL portal to generate the T-PIN number. BO ID and PAN are asked on the portal next. In the BO ID, put the 16-digit Demat account number and PAN number on the text file.
- Once the above numbers are filled accurately, OTP is asked. This OTP is sent to your registered mobile number and email id to the Demat account. Then enter the OTP.
- Once this is done, T-PIN will be sent to the registered mobile number and the email ID. This T-PIN is an important part of the selling of stocks transaction on the Demat account.
- Your T-PIN can make your CDSL account within 6 minutes.
Always remember these steps to get the T-PIN number.
Pre-Authorizing Sells
Using the simple process, a pre-authorizing sell from the CDSL portal is made. The pre-authorizing of the sale of the stock and the process is simple, so that you don’t have to enter T-PIN again and again. Once it is done, the T-PIN is valid for 90 days for the stocks added to the list for selling.
If you wish to sell any other stock apart from one listed in the pre-authorizing sell, you have to re-order the CDSL T-PIN order.
Can CDSL T-PIN change?
Yes, the CDSL T-PIN can be changed in the case you have forgotten it or need to change it for security purposes. You need to click on the forgot CDSL to proceed. Once this is done, a new PIN will be generated. This generated PIN can be used further or if you wish can be changed again too.
Conclusion
Digitalization of trading might have solved a lot of hurdles in the stock market investments. This has its own flaws if the online transaction is not done properly. To make sure the problems do not arise, CDSL has taken all necessary measures to sell the transaction online using authorized T-PIN for the investors and broking house. We have covered a lot of information and questions about CDSL T-PIN and the steps to generate it. Always stick to the process and stay away from unwanted complications.
