What is TPIN? How CDSL Generate Tpin?

What is TPIN?

TPIN means Transaction Personal Identification Number. It is a six-digit PIN that is generated by the depository (CDSL or NSDL) for every beneficial owner (BO) of securities. The TPIN is used to authorize the sale of securities from a demat account.

In the world of stock trading, TPIN is like a digital key that allows you to sell your shares. Without your TPIN, you cannot sell your shares, even if you have the right to do so.

How does TPIN work?

When you place a sell order for a stock, you will be asked to enter your TPIN. The OTP will be sent to your registered mobile number and email address. You will need to enter OTP to authorize the sale of your shares.

The TPIN is a two-factor authentication mechanism that helps to protect your securities from unauthorized access. The first factor is your knowledge of your TPIN number, and the second factor is the possession of your registered mobile number and email address.

For example, let's say that you bought 100 shares of Infosys on Monday, and you are planning to sell, let's say, on Thursday then you would place a sell order through your broker. Your broker would then send a request to the depository to sell your shares. The depository would check your TPIN to make sure that you are authorized to sell the shares. If your TPIN is correct, the depository would then sell your shares when authorized.

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Why do I need TPIN?

TPIN is required to sell securities from a demat account in order to enhance security and prevent unauthorized access to your shares. Without TPIN, anyone who has access to your demat account could sell your shares without your permission.

For example, let's say that your Demat account is hacked. The hacker could sell your shares without your permission if you do not have TPIN. However, if you have TPIN, the hacker would also need to know your TPIN in order to sell your shares. This would make it much more difficult for the hacker to steal your shares.

TPIN also helps to reduce fraud by brokers. In the past, there have been cases where brokers have withdrawn the shares of an individual or moved the shares from customers demat account to the broker pool account without customer’s consent. To stop such frauds from happening, CDSL introduced the concept of Tpin.

How to generate TPIN?

You can generate TPIN either through your depository participant (DP) or on the depository's website. For example, if you go to the CDSL website you can simply go to their website and click on the right where you will find an option to generate Tpin.

To generate TPIN through your DP, you will need to provide your DP with your PAN and demat account number. To generate TPIN on the depository's website, you will need to provide your PAN and demat account number, as well as your registered mobile number and email address.

CDSL TPIN, a six-digit PIN, was introduced in June 2020 as an alternative to the Power of Attorney (PoA), which was previously required for online trading. CDSL customers no longer need to sign a PoA to trade online.

How to find my TPIN?

Your TPIN will be sent to your registered mobile number and email address. You can also find your TPIN on your DP's website or in your demat account statement. TPIN is created and managed by CDSL and its authorization remains only for a day and a new one can be generated again from the CDSL website in seconds.

What if I forget my TPIN?

If you forget your TPIN, you can reset it through your DP or on the depository's website. To reset your TPIN, you will need to provide your PAN and demat account number, as well as your registered mobile number and email address. Now that you know about TPIN, you can also learn how to open a demat account and start your investment journey now.

 

Additional security measures:

In addition to TPIN, there are other security measures that you can take to protect your securities. These include:

1. Using a strong password for your demat account.
2. Keeping your password confidential.
3. Keeping your demat account statement safe.
4. Being careful about who you give your PAN and demat account number to.

Conclusion

TPIN is a simple but effective way to protect your securities from unauthorized access. TPIN is like a firewall that protects your shares from hackers and if you have a Demat account, it is important to generate TPIN and keep it safe. The concept of TPIN is an important concept for all traders to know as they buy and sell shares consistently, especially for scalpers. If you also want to do scalping trading, then get to know about what is scalping trading and how to do it.