Zerodha CDSL TPIN Explained (Pre-authorise sell from Demat)

Published on Friday, June 5, 2020 by Chittorgarh.com Team | Modified on Thursday, April 15, 2021

CDSL TPIN is 6 digit password to authorise a broker to withdraw selected shares from the customer's demat account with CDSL. Zerodha CDSL TPIN allows Zerodha customers to give limited time permission to Zerodha to withdraw the selected shares when they sell them online.

TPIN is an alternate to the Power of Attorney (PoA) given to the broker by the customer at the time of account opening. TPIN replaces the PoA all together.

TPIN is managed by the depository CDSL. You can get the new TPIN or reset the PIN online at any time using CDSL website. Zerodha use the TPIN as 3^rd party service from CDSL.

Introduced on June 1, 2020, TPIN is a solution to the brokers misusing the limited power of attorney (PoA) given to them by the clients. The Demat PoA was designed for online trading. It permits brokers to withdraw shares when you sell them online.

Note:

Zerodha customer gets 3 PIN Numbers:

1. Kite PIN (for Login)
2. Zerodha Telephone Code (for calling Zerodha)
3. Zerodha CDSL TPIN (for Demat Sell Transaction)

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Zerodha CDSL TPIN

Zerodha CDSL TPIN is a 6 digit (numbers only) code provided by CDSL. The PIN offers additional security to your demat account. Zerodha cannot withdraw securities from your demat account without you permit them to do this by using the TPIN.

When you open a demat account with Zerodha or any stock broker, your demat account is actually opened with CDSL or NSDL, the 2 central depositories in India.

Zerodha is depository participant with CDSL (Central Depository Services (India) Ltd). This means the CDSL depository actually hold your demat account with Zerodha. All the securities (Shares, MF, Bonds, NCD, ETF etc.) remain in your demat account with CDSL. Zerodha only service your demat account. It doesn't have access to this account until you explicitly give it.

You would need your Zerodha CDSL TPIN in following trading scenarios'

1. Placing a ‘Sell' order
2. Convert intraday sell order to delivery orders
3. Get margin benefits on your stocks

Before the introduction of CDSL TPIN, stock brokers would ask you to sign a PoA (Power of Attorney) at the time of account opening. The limited PoA authorizes them to debit the securities from your demat account when you sell them. In few cases, the regulators found brokers misusing the PoA for their own benefits.

The TPIN is an additional password which allows customer to authorize the demat transaction. The TPIN is stored in CDSL database which makes it safe from brokers misusing it.

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Zerodha CDSL TPIN Facts

• Zerodha CDSL TPIN is created and managed by CDSL website.
• Zerodha doesn't store your CDSL TPIN.
• It's a 6 digit numeric password which can be reset anytime.
• The authorization remains active for one day.
• You can check the authorization status in ‘Holdings' section of Zerodha Kite.
• If you forget your TPIN, a new password can be generated from CDSL website in just few seconds.

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Benefits of Zerodha CDSL TPIN

• CDSL TPIN adds additional safety to your demat account by eliminating the need for PoA.
• Managing Zerodha CDSL TPIN is very easy. You could visit CDSL website and get new TPIN or reset the existing TPIN at any time.
• Zerodha use CDSL TPIN as a 3^rd party service. The authentication application is owned and operated by CDSL. This means Zerodha cannot manipulate or misuse it.
• It makes Zerodha Demat Account opening completely paperless. Earlier PoA was the only signed-paper-form required by CDSL.

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Zerodha CDSL TPIN Generation

CDSL has sent T-PINs to registered mobile and email addresses of all demat account users registered with it.

The SMS looks like as below:

TPIN To Avail CDSL e-DIS Facility For BOID *****512 is 621748.

In case you have not received the TPIN for your Demat account with Zerodha, you can generate a new pin using the following steps.

Steps to generate Zerodha CDSL TPIN

1. Visit CDSL website (cdslindia.com)
2. Click on the ‘Generate- eDIS TPIN' link
3. Enter your BO ID (16 digit Zerodha Demat Account Number)
4. Enter PAN Number and click the ‘Next' button
5. Enter OTP received on email or mobile.
6. Receive TPIN in SMS and email as ‘Your Generated TPIN code is 113211'

Note:

• Get your Demat Account Number in the ‘My Profile' section of Zerodha Kite Mobile app or website.
• The TPIN is sent on your mobile and email ID registered with your stock broker.

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Zerodha CDSL TPIN Change (Reset TPIN)

Zerodha CDSL TPIN is a 6 digit password which can be change or reset at any time. The TPIN can be reset online using CDSL website in the same manner as you generate a new TPIN.

Steps to change Zerodha CDSL TPIN

1. Visit CDSL website (cdslindia.com)
2. Click on the ‘Change – eDIS TPIN' link available on right side
3. Enter your BO ID (16 digit Zerodha Demat Account Number)
4. Enter PAN Number and click the ‘Next' button
5. Enter OTP received on email or mobile.
6. Receive TPIN in SMS and email as ‘Your Generated TPIN code is 113211'

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Zerodha CDSL Authorization Process

You would need to authorize every ‘Sell' order placed on Zerodha with CDSL TPIN, if you do not have PoA with Zerodha.

Steps to Zerodha CDSL TPIN Authorization

1. While placing a ‘Sell' order, you will be asked to authorise the trade.

   

2. Click on the ‘Continue' button. This will take you to CDSL website.

   

3. Click on ‘manage authorisations' allows you to select stocks for authorization. You can authorise to sell all stocks or select a few. You can also authorize stocks which you're not currently selling. The authorisation is valid for one day.

   

4. Enter your CDSL TPIN

   

5. On successful authorization, you will get the following message.

   

6. Place the sell order on Kite platform.

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