Understanding Zerodha CDSL TPIN
The largest stock broker of India in the stock market Industry is Zerodha. It facilitates its customers with various unique additional services. Zerodha provides a CDSL TPIN i.e. a six-digit password in order to authorise the withdraw the selected shares from the customer’s demat account with the CDSL depository.
The Zerodha CDSL TPIN provides the customers to provide the limited time permission to Zerodha to allow the broker to withdraw the selected share at the time of selling the shares online.
The Zerodha TPIN is an alternative to the PoA (Power of Attorney). It is provided to the broker by the customer while opening an account. TPIN can replace all the PoA altogether.
The TPIN of an individual’s account is managed by the depository CDSL. The one can receive a new TPIN or can reset it online at the time when using the CDSL website. Zerodha uses the TPIN as the third-party service from the CDSL.
Zerodha is a depository participant with the CDSL. It simply means that the CDSL is holding all the demat accounts opened with Zerodha. All of the securities such as Shares, Mutual Funds, NCD, ETF and more remains in the demat account with the CDSL. Zerodha is responsible only for servicing the customer’s Zerodha demat account. The broker does not provide access to the account until they explicitly provide it to broker.
Where do we need to use Zerodha CDSL TPIN?
An individual needs to have their Zerodha CDSL TPIN in the various trading practises:
1. While placing a “Sell” Order.
2. While converting the sell order to the delivery orders.
3. To provide margin benefits on the customer’s stocks.
Before the CDSL TPIN was introduced the stock, brokers would ask the customers to sign a PoA i.e. Power of Attorney at the time of opening an account. The limited PoA provides authorization to debit the securities from their demat account at the time of selling them. The TPIN is stored in the CDSL database that makes it further safe and resist the brokers from misusing it.
How can you generate the Zerodha CDSL TPIN?
The Central Depository Securities Limited i.e. CDSL send the T-PINs to the customers registered mobile number and e-mail address for all the demat account users that are registered with it.
If the customer does not receive the TPIN for their demat account with Zerodha then they can generate a new pin by using the following steps:
1. Visit the official website of CDSL.
2. Select the “Generate- eDIS TPIN” link.
3. Enter the BO ID (16-digit Zerodha Demat Account No.).
4. Enter the details such as PAN number and then click on the “Next” button.
5. You will receive an OTP on your mail and mobile number, enter the OTP and approve it.
6. You will receive a TPIN in SMS and email as “Your Generated TPIN code is 1****1.
How can you change the CDSL TPIN change?
The Zerodha CDSL TPIN is a 6-digit password that can be changed or reset at any time. The TPIN can be easily reset via online by using the official website of CDSL in a way similar as generating the new TPIN.
Steps to change the Zerodha CDSL TPIN are:
1. Visit the official website of CDSL.
2. Select the “Change-eDIS TPIN” link present on the right side.
3. Enter the BO Id.
4. Enter the details such as PAN Number and then click on “Next” button.
5. You will receive an OTP on your mail and mobile number, enter the OTP and approve it.
6. You will receive a TPIN in SMS and email as “Your Generated TPIN code is 1****1.
How to authorise Zerodha CDSL TPIN?
An individual needs to authorize each “Sell order” that is placed on Zerodha with the CDSL TPIN, in case an individual does not hold a PoA with Zerodha.
Following are the steps to Zerodha CDSL TPIN Authorization
1. At the time of placing a “Sell Order”, the customer is asked to authorise the trade.
2. Click on the “Continue” button. It will take you to website of CDSL.
3. Select the “manage authorisations” allows the customers to select the stocks for authorization. The customer can simply authorise to sell all the stocks or can select a few. The customers can authorize the stocks that are currently not selling. The authorization remains valid up to 90 days.
4. Enter your CDSL TPIN.
5. On the successful authorization, the customer will receive the below-mentioned message.
6. Place the sell order on the Kite platform.
Remember:
The customer can authorize all the demat holdings at once. The authorization is valid just for 90 days after which the customer can authorize again.
Advantages of using Zerodha CDSL TPIN
1. The CDSL TPIN provides additional safety to their demat account just by eliminating the need for PoA.
2. It makes it easy to manage the Zerodha CDSL TPIN. The customer could visit the CDSL website and can receive the new TPIN or reset the existing one at any time.
3. This broker use CDSL TPIN as a third part service. The authentication of the application is owned and further operated by CDSL. It means Zerodha cannot manipulate or use it.
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