Investing in the stock market is simple and straightforward. You buy stocks when their price is low and sell when the price is high. The difference between the cost price and the selling price is your profit. However, as easy as it is for investors, government authorities such as Depository Participants and the Securities and Exchange Board of India have created extensive internal processes to ensure that the stock market operations run smoothly. One such recent process introduced by SEBI is the verification process at the time of selling stocks. Now, when you place a sell order for the stock you hold in your demat account, you must verify the order by entering a TPIN and a one-time password (OTP).
 

This blog will help you understand the recently introduced stock verification process through TPIN and OTP. 

• e-DIS enables the electronic authorisation of share sale transactions from a demat account, eliminating the need for physical slips.
• SEBI introduced the e-DIS facility last year, which requires entering a TPIN and OTP.
• Investors can enter their current TPIN or generate a new one for every sell order.

The Securities and Exchange Board of India (SEBI) introduced the verification process for selling stocks in 2023 to ensure that sell orders are executed only after the stocks are verified from the seller’s end. The process, called the e-DIS verification, was aimed at ensuring better investor protection by verifying the stocks that an investor is selling. SEBI introduced two methods, TPIN and OTP, to complete the electronic delivery instruction slip (e-DIS) process.
 

The process now requires investors to enter a TPIN and OTP to successfully place a sell order. Although you may have already received a TPIN from your depository, you can generate a new one every time you place a sell order. Afterwards, you must enter the OTP received on your registered mobile number to complete the e-DIS process.

Here are the new changes that have happened after the introduction of the verification process for selling stocks:

TPIN + OTP verification

You are now required to enter a previously generated TPIN or a new one along with the OTP you receive on your mobile phone for selling stocks.

Verification validity

If you verify your stocks during market hours, they remain verified until the market closes on the same day. On the other hand, if you verify your stocks after the market closes, the verification remains valid until the market closes on the next day.

Setting TPIN

If you have forgotten or misplaced the TPIN provided by your depository on your email ID and text, you can request a new one every time you place a sell order.

There are two ways to verify your holdings:

• Visit your demat account dashboard and click ‘Verify Holdings’.
• While placing the sell order through entering TPIN and OTP.

You would have received a TPIN from your depository (CDSL or NSDL) on your email ID with the subject line: “TPIN for the online DIS (e-DIS facility). If you can not locate this TPIN, you can simply click on ‘Generate TPIN’ in your sell order, and you will receive a one-time new TPIN on your registered mobile number and email ID.

Although your depository must have sent you a TPIN, you can set your own if you do not want to enter the one provided by the depository and do not want to generate a new one every time. Here are the steps to follow for setting your own TPIN:

• Visit the e-DIS facility website page of CSDL or NSDL based on the depository of your stockbroker.
• Enter your BOID and PAN number. BOID number is your 16-digit demat account number.
• Click on the ‘next’ button and enter the OTP received on your mobile phone on the next screen.
• Enter the new TPIN you want to set and click on ‘Submit.’
• You will see a confirmation screen confirming that you have set your new TPIN.

The Securities and Exchange Board of India introduced the verification process for selling stocks last year to verify the stocks that an investor wants to sell. Under the e-DIS facility, you are required to enter a TPIN and an OTP to execute your sell order. You can either enter the OPT provided by the depository or generate a new TPIN every time. You can also set your own TPIN by visiting your depository's website.