CDSL introduces dual authorisation for all your delivery sell transactions
SEBI (Securities & Exchange Board of India), in it’s latest guidelines have instructed depositories (CDSL) to make a few changes to the eDIS process.
As per the new changes Paytm Money users will have to go through two factor authorization for any sell transaction that would be executed. This will include entering a TPIN to validate Demat on CDSL and then OTP to authorise the sell transactions. This increases friction for users to sell, but this is to safeguard the customers and avoid misuse of the authorisations.
New eDIS flow is expected to go live on 18th Feb on Paytm money. This is a change that has been communicated recently and we are making live before the SEBI’s deadline of 20th Feb in the interest of our users.
Here is the flow of transactions once the new system kicks in
- For any sell transaction, you will be asked to enter TPIN in order to go to the CDSL page
- Every customer has a unique TPIN that is assigned by CDSL. TPIN is a unique pin that will remain the same across transactions (similar to passcode)
- This TPIN can be generated by tapping the Get TPIN button in the app or website
- TPIN is directly sent to you on your mobile and email id by CDSL. Paytm Money doesn’t know your TPIN details.
- After TPIN is successfully entered, you will be shown the stocks that you are selling and asked to authorise the sell transactions using OTP sent by CSDL to your mobile and email.
- Once you successfully authenticate using OTP, you can proceed to place the sell order
A Small Tip
You can remember the TPIN to avoid one step of generating TPIN each time. Also, you can reset the TPIN of your choice after going to the reset TPIN option provided in the app/web.
How to set your own TPIN?
- Click on the Proceed to reset TPIN link
- Enter the Demat Account Number and the PAN number
- Enter the OTP sent by CDSL to the registered mobile number and Email ID
- Enter 6 Digit TPIN of your choice
Why is authorisation needed in the first place?
When you sell stocks, Paytm Money debits the sold shares from your Demat account. Earlier, customers had to physically sign a POA and send it to the broker before being able to sell any stock.
Paytm Money, however, has simplified this for its users. This also helps to ensure the safety of the stocks held by clients in the Paytm Money DP account as the stocks can be moved only if the TPIN + OTP is entered. Customers can sell stocks without submitting a signed POA document by authorising their sell transactions directly with CDSL facilitated TPIN + OTP.
CDSL has set up a new mechanism for sell transactions as SEBI believes that the e-DIS facility should necessarily capture all details that are otherwise being captured in physical DIS.