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Stock Markets

CDSL PIN-What is it and how to use it for share trading?

Written by - Akshatha Sajumon

February 7, 2023 6 minutes

Rapidly changing technology has introduced many concepts like mobile banking, net banking, e-wallets, etc, which we once did not know of. Digitisation has entered almost all walks of life, including equity trading. As digital technologies evolve constantly, managing various types of online accounts has become far easier. Today, we can see that most depository participants in the equity markets are constantly trying to make trading easier for investors. 

In the Indian stock markets, the last few years have seen new players enter the market to offer services such as app-based trading, digitally available technical analysis, etc. Digitisation of various aspects of stock markets has helped boost the safety and security of transactions apart from offering convenience. 

Here, we will talk about one such concept that has been introduced as part of digitally enhanced stock market transactions, that is, the CDSL TPIN. 

What is CDSL TPIN?

CDSL, or Central Depository Services Limited, is an Indian securities depository institution. It securely holds various securities in a digital format, thereby assisting stock exchanges are stock market participants.

CDSL TPIN is a crucial component of the stock trading process. It comes in the form of a six-digit passcode that must be entered for authorizing the broker to sell selected stocks from an investor’s Demat account.

The CDSL TPIN security mechanism enables investors to easily authorise any account-related action online. It acts as an additional layer of security while operating Demat accounts online. It provides a unique One Time Sell Authorisation passcode or pin delivered to the user’s mobile number through CDSL. This is required for validating Demat account transactions. 

Why is CDSL TPIN required?

We all know that stock market trading mandatorily requires an investor or trader to have trading and Demat accounts. Once an investor has opened a Demat account with a registered broking house, he/she is authorized to trade in stocks or place buy/sell orders through exchanges like BSE and NSE. These accounts are essentially registered with the CDSL, depending on the broker chosen. 

Whenever an individual places a buy order on a stock, the broker will receive those shares in digital form on behalf of the buyer. The broker then transfers them to the buyer’s Demat account. Since there was no security aspect involved in such transactions earlier, broking houses introduced something called a POA or Power of Attorney. This is a document that authorises the broker or broking house to sell stocks on behalf of the client or Demat account owner.

However, POA does not allow digital signatures as per the IT act mandate. This means an investor or trader will have to physically sign a POA to authorise the broker to carry out the transaction on his/her behalf. The signed copy of the POA then has to be delivered to the broking house before the sale transaction can be initiated. 

To eliminate this hassle and improvise user experience, the POA method was taken off and, in its place, the TPIN was introduced. The TPIN method allows far better control to investors over their Demat accounts and makes the entire process far more reliable.

When do you require authorization with TPIN?

CDSL TPIN aids security and authorises users to take charge of their Demat account transactions. It is required for initiating a sell transaction on any Demat account. Once the user enters the CDSL TPIN, the system validates whether it is an authorized user and only after affirmation does it allow the user to carry forward the sale transaction.

Once a user initiates any sale transaction, he/she will receive an ‘Authorize Now’ option. Once clicked, the user is redirected to the CDSL webpage. The user must then enter the relevant CDSL TPIN to proceed. The pin may be required again in the below-mentioned cases:

  • To change a sell transaction from intraday to delivery
  • To change a sell transaction for receiving intraday shares for delivery in the Demat account
  • For receiving margin benefits against stocks held

It is important to note that CDSL TPIN is a mandatory requirement and not optional.

Smart tip for Demat account holders

Since TPIN acts like a passcode, a user can remember the CDSL TPIN to do away with the steps of generating a fresh TPIN every time. One can easily reset the TPIN by using the reset TPIN option on the broker site or broking platform.

Benefits of using CDSL TPIN

The CDSL TPIN offers the following benefits to stock market investors and traders:

  • With CDSL TPIN, an investor or trader can enjoy better control as far as authorizing stock market transactions through Demat accounts is concerned.
  • This pin helps in making online Demat account transactions far safer and more convenient by doing away with the requirement of signing PoA and sending it to the stockbroker.
  • CDSL TPIN can be used for any Demat account sale transaction if the account holder cannot provide a signed PoA to the stockbroker. Therefore, it acts as a backup route.
  • Since the TPIN is handled by CDSL, it is not possible for the stockbroker to indulge in any form of misuse or manipulation that will impact the investor or trader.


Central Depository Services Limited (CDSL) took the digitisation of stock trading one step further by coming up with the idea of a TPIN. It is designed to simplify transactions for traders and investors. With the CDSL TPIN authorization method, an investor’s Demat account transactions can be carried out with maximum security. 


How to generate CDSL TPIN?

An investor or trader can request a TPIN from his/her profile or Demat account on the broker’s site or app. While generating CDSL TPIN, a user will receive it on his/her registered mobile number and email ID. It is therefore important to ensure that the investor’s contact details are updated with CDSL.

Can I reset by CDSL TPIN?

Yes, you can change or reset your CDSL TPIN online to enhance the safety and security of your Demat account transactions.

What is a depository participant?

A depository participant acts as an intermediary between investors or traders and CDSL or NSDL, which are Indian depositories. A DP is like an authorised agent acting on behalf of the CDSL of NSDL. Since it is not possible for investors or traders to directly reach out to CDSL or NSDL for securities trading, they take the help of DPs to reach out to the depositories.

Does CDSL TPIN require charges?

No, the CDSL TPIN request does not attract any charges and is free for investors.

Can I sell shares without a CDSL TPIN?

CDSL TPIN is mandatory for any sell transactions on a Demat account. If an investor or trader has a PoA or Power of Attorney that can be signed and physically submitted to the broker, they can use the same in place of a CDSL TPIN. However, this process can be lengthy and cumbersome.

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