Update on TPS authorization of CDSL to sell stock

In May 2020 Depositories (such as NSDL and CDSL) launched a New process In which investors could sell their shares for any delivery trade only after using TPIN. Due to this new process, investors could open and operate their trading and Demat accounts completely online without the physical paper of power of attorney.


SEBI has now mandated OTP for Depositories to deliver the shares from the Demat account in addition to the existing TPIN. CDSL to all stockbrokers This circular According to this, the process has been asked to go live from Saturday, February 20, 2021. Because of this, the following changes will be in all non-PoA demat accounts:

1. In addition to TPIN, OTP has to be entered to be delivered from the demat account. OTP will be sent by CDSL to your registered email and mobile number.

Authorisation before a trade

2. Until now, the TPIN authorization was valid for 90 days, meaning that once the stock was authorized for debit, you would not have to authorize the same stock the next time (by visiting the CDSL website). From February 20, 2021, the authorization will be valid only for one trading day. This means that each day when you intend to sell a stock, you will be redirected to CDSL’s webpage, where you will have to enter TPIN and OTP to authorize the debit. If CDSL for any reason OTP is not able to send, you can still do cell transaction. You will have to authorize the debit of the cell transaction after trading before 5:00 pm on the trading day. To do this, you have to click on the ‘Authorisation’ button on the holdings page on the kite. If you do not authorize the debit after selling, then the transaction will be treated as short delivery and auction and a penalty will be charged later. You more about the auction process here can read.

3. GTT Cell Orders and its Impact on SIP Cell Orders: Since the new process requires an OTP to successfully complete the transaction, you will need to authorize all your holdings for debits with TPIN and OTP every morning. This is a temporary solution and we will soon switch to post-trade authorization for GTT and SIP sales orders.

Keep in mind: You must reauthorize your stock with OTP, even if you have previously authorized the sale of shares with TPIN only from February 20, 2021.

While we understand that the new process may seem difficult in some aspects, please keep in mind that these changes have been suggested by SEBI with the interest of securing your investment. In light of these changes, it would also be good for you to have your latest, and active, mobile number and email registered with CDSL. If you have changed your email and mobile number and have not updated us, please The console But hurry otherwise you will not get OTP to sell your stocks.

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