new-edis-authorisation-process-effective-feb-20

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New eDIS Authorisation Process effective Feb 20

New eDIS Authorisation Process effective Feb 20

0Comments February 22, 2021

In a move to further strengthen the existing Electronic Delivery Instruction Slip (eDIS) process, SEBI has advised the depositories (NSDL/CDSL) to mandate OTP verification at the time of authorising Sell transactions in addition to the existing TPIN authorisation. This new authorisation process is effective from Saturday, February 20, as per these circulars.

What changes for customers that use eDIS

OTP verification added

In addition to TPIN, an OTP will have to be entered at the time of authorising stocks for debit. The OTP will be sent by NSDL/CDSL to your registered email address and mobile number.

Change in validity of authorisation before a trade

Until now, the eDIS TPIN authorisation remained valid for 90 days, which meant that once the stocks were authorised for debit, you needn’t authorise the same stocks (by visiting the NSDL/CDSL website) for the next 90 days. However, from Feb 20, the authorisation shall stay valid for 1 trading day only. This means that each day you intend to sell a stock, you’ll be redirected to the NSDL/CDSL webpage, where you’ll need to enter the TPIN and OTP in order to authorise the debit.

What happens to stocks that have been previously authorised for sale?

Those who have previously authorised the sale of stocks using the older method of just TPIN authorisation will have to freshly authorise their stocks with OTP again.

Note: these changes apply to only those customers who have not shared Power of Attorney with their brokers and still use the eDIS facility.

R. Kalyanaraman
by R. Kalyanaraman

Chief Executive Officer

I am a sales guy at heart with utmost willingness to listen to people – customers, employees, competitors et al. Nothing gets me a bigger adrenaline rush than an interesting conversation with my customer!

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