What Is TPIN in a Demat Account: Definition, Purpose and Functionality

Learn through this section how TPIN serves as an essential security feature, its purpose, and what you will understand by the end of reading.

TPIN—Transaction Personal Identification Number—is a six‑digit code used to authorise the debit of securities from a CDSL-linked Demat account during sell transactions. Introduced in June 2020 to eliminate risks associated with Power of Attorney, TPIN enhances investor control and regulatory compliance. This content covers its origin, generation and usage, aiming to clarify every concept for those new to investing.

Understand the full form and regulatory origins:

TPIN means Transaction Personal Identification Number. It is issued by the Central Depository Services Limited (CDSL), one of India’s two main depositories for holding Demat securities. TPIN was introduced by CDSL in response to SEBI’s directive to reduce reliance on PoA and enhance investor protection through e-DIS mechanisms.

Explore the regulatory context and investor implications:

Prior to June 2020, brokers often required investors to sign a Power of Attorney (PoA), granting them rights to debit securities directly. SEBI phased this out, transferring control to investors via TPIN. This shift addressed misuse concerns and reduced paperwork while ensuring Demat transactions aligned with regulatory standards.

Follow the process during a sell transaction:

When placing a delivery-based sell order:

1. Investor initiates the sell through broker’s platform.
   

2. The platform directs to CDSL’s e-DIS portal.
   

3. Investor enters the 6-digit TPIN.
   

4. An OTP is sent to their registered mobile and email.
   

5. After OTP validation, the sell is authorised and completed.
   

The TPIN remains valid until changed, but authorisations given using TPIN (via OTP) are valid only until the end of the trading day.

Learn step‑by‑step generation on CDSL portal or broker platforms:

CDSL website method:

• Visit CDSL e-DIS Generate TPIN page
  

• Enter 16-digit BO ID and PAN
  

• Complete captcha, request and enter OTP (valid 15 minutes)
  

• TPIN is sent via email and SMS within minutes
  

Broker platforms (e.g., Zerodha, Angel One):

• Navigate to TPIN/Authorisation section under Portfolio
  

• Choose “Generate TPIN” or “Forgot TPIN”
  

• Follow OTP-based process as above
  

For resetting or changing PIN, use CDSL Change TPIN flow: same inputs with option to set a new 6‑digit PIN, effective within ~5–10 minutes 

Guide through actual sell authorisation:

On brokers like Zerodha:

• From Holdings, select shares to sell
  

• Tap “Authorise” (or “Verify to Sell”)
  

• Review instrument list (up to 100 max) and proceed
  

• Redirect to CDSL portal, enter TPIN, verify OTP
  

• Sell order can now be placed on the platform
  

Pre-authorisation option allows approving multiple trades at once, valid until end of trading day.

Steps to update PIN via CDSL portal:

• Visit CDSL Change TPIN page
  

• Enter BO ID and PAN, request OTP
  

• Provide OTP, set new 6-digit TPIN
  

• TPIN activates within ~5–10 minutes and is confirmed via SMS/email 
  

Key advantages for self-directed investors:

1. Enhanced security by replacing PoA with investor-controlled authorisation
   

2. Greater investor control—only holder authorises sell transactions
   

3. Broker interference eliminated; TPIN handled entirely by CDSL
   

4. Paperless process with OTP-based authorisation cutting out manual DIS slips
   

5. Regulatory alignment with SEBI’s mandate and investor protection goals

Clarify misconceptions and simplify understanding:

• TPIN is only mandatory for sell transactions—not for purchases, intraday, F&O, or delivery credits
  

• TPIN is not the login password—it solely authorises debits
  

• TPIN and OTP are separate: OTP confirms identity after TPIN entry
  

• Pre-authorisation allows multiple trades under a single TPIN session
  

Reviewing the nuanced role of TPIN:

TPIN places control firmly with the investor over their Demat account transactions, replacing less secure arrangements like PoA. Issued and managed by CDSL, it enhances safety and ensures only the legitimate account owner can instruct sell trades. With straightforward OTP-based confirmation and optional pre-authorisation, TPIN blends security with convenience—empowering self‑managed investors to participate in markets with confidence.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.