What is TPIN in a Demat Account?

TPIN stands for Transaction Personal Identification Number, a special four-digit number used to approve transactions in a Demat account. With a Demat account, you can hold your shares, bonds, and other securities electronically. 

According to SEBI, the share market regulator, investors can only sell their stocks or shares after confirmation. For improved investment protection, CDSL adopted e-DIS verification, which stands for an electronic delivery instruction slip. When equities are sold, this verification is carried out via TPIN. TPINs protect accounts from unauthorised access and fraud. To prevent unauthorised access to your account, you should keep your TPIN confidential and not share it with anyone. This blog discusses what is TPIN, the full form of TPIN, how it works and the process of generating it.

How Does TPIN Work?

The TPIN full form is the Transaction Personal Identification Number. Here is how TPIN works:

• Initiating Transaction: You must initiate the process through the trading platform at the time of selling shares or other securities.  
• Verification of TPIN: You must enter the TPIN to proceed with the transaction. This is important for proper identity verification and authorisation.  
• Secure Transaction: The transaction will be processed, after the due verification of your TPIN. The transaction stops if the entered TPIN does not match. This protects your account from any unauthorised access.
• Regular TPIN Updation: Investors should regularly change the TPIN. This helps to safeguard their Demat account against any kind of potential security threats.

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How to Generate TPIN

After understanding what TPIN means, let's look at the process of generating a TPIN number. You can generate your CDSL TPIN instantly online at the CDSL website.

1. Go to the CDSL or DP (Depository Participant) websites and log into your Demat account using your credentials.
2. Go to the TPIN Registration section and click the Generate TPIN option.
3. Enter your DP ID and Customer ID to verify your account details.
4. Select the ‘Generate TPIN’ option and enter your PAN (Permanent Account Number) and bank account details to authorise the transaction.
5. Once your details have been verified, you will receive an OTP for your registered mobile number or email ID.
6. Enter OTP and the 4-digit TPIN of your choice.
7. Check the TPIN and submit the request.
8. A TPIN will be generated, and a confirmation message will be sent to your registered mobile number or email ID. 

Why Do Traders Need A CDSL TPIN?

Investors cannot buy or sell securities directly. The broker executes trades on their behalf. Earlier, investors provided a power of attorney (POA) to the broker for making the transactions. It granted your stockbroker the authority to execute trades on your behalf. However, this system had a disadvantage. According to the regulations, the POA had to be physically signed and sent to your broker for verification. This made it difficult to open a Demat account through an e-sign with an Aadhaar card or other documents.

The process was too long, so it was substituted by TPIN. The TPIN system's implementation improved transaction security and dependability while also giving investors more control over their trading.

This allows investors to transact freely using the CDSL TPIN. So when you place a trade, it redirects you to the CDSL portal. You can input the TPIN on the portal and authorise your transaction.

You will be required to provide your TPIN for the following.

• To manage the sell orders in delivery trading
• Receiving margin benefits
• Manage sell orders to get intraday shares in your account. 

TPIN is mainly a security measure that assists in selling securities from within your broker's app or website.

How to Use TPIN for Selling Shares? 

Let’s now understand how to sell shares from your Demat account after understanding what is TPIN number. Here are the steps you must follow.

• Enter the login credentials to access your online trading account.
• You may also issue a sell order on your Demat account if you have any securities to sell. The sell order will appear as pending for execution as soon as you submit it.
• CDSL will send you an email or SMS requesting TPIN authorisation.
• Click on the provided link, then input your CDSL Demat account number.
• Kindly enter the six-digit TPIN that you already created. With your registered mobile number, you may input the OTP that you got.
• After the authorisation is finished, the pending sell order will be carried out.
• When you sell shares, they'll be taken out of your Demat account. The funds will be transferred to your bank account linked to your trading account. 

You can keep track of these transactions by checking your Demat account activity on your stock broker's platform.

Benefits of TPIN in Demat Account

Now that we’ve covered the TPIN meaning, let’s look into the TPIN benefits. TPIN offers several advantages for investors holding securities in a Demat account. Some of these benefits include the following.

1. Increased Security: TPIN provides an additional layer of security to investors. It ensures that only authorised individuals can place orders or make changes to their accounts.
2. Saves Time: By reducing the time required to complete transactions, TPIN saves time for investors. The paperwork is eliminated, reducing the overall time required for verification.
3. Decline in Fraud: TPIN reduces the risk of fraud by ensuring that only the authorised person can access the account. It also stops unauthorised transactions or changes to the account, reducing the risk of financial loss due to fraudulent activities.
4. Convenience: TPIN removes the requirement to visit their broker’s office or repository participant’s office to place orders or make any changes to their accounts. It allows investors to trade from the phone from their home or office.
5. User Friendly: The TPIN is an easy and user-friendly security feature that can be set up and managed online. 

How To Change TPIN?

It's crucial to understand how to change your TPIN. The following are seven easy steps that will help you secure your account and successfully change your TPIN.

Step 1: Log in to the platform of your broker or depository participant, which can be a website or a mobile application. Log in to the DPs portal or the CDSL Portal.

Step 2: Once logged in, go to the ‘reset or generate’ section. It is usually located under security settings or a settings account.

Step 3: The next step is identity verification. This can be done by providing  information such as your email address, mobile number, the number of the mobile number, your Demat account number, etc.

Step 4: You will receive an OTP on your mentioned email address or mobile number to validate the details.

Step 5: Enter the OTP to verify the details and proceed.

Step 6: Next, you must set up a new TPIN. It is recommended you select a TPIN which is difficult for others to guess. 

Step 7: Finally, a confirmation message or mail will be sent to your mail and mobile number with the new TPIN. This is your final confirmation that the T-PIN has changed.

Conclusion
TPIN is a numerical code used to verify transactions while selling securities. The TPIN adds an extra layer of security to the Demat account. It prevents fraud and ensures that only the account holder can make transactions using the trading app. The TPIN must be kept very confidential. Investors should immediately change their TPIN if it is compromised. Greater security, convenience, defence against unauthorised access, control over transactions, and ease of use are all benefits of having a CDSL TPIN in a Demat account.