New feature by CDSL to prevent Demat related fraud: Know how this will make your accounts with Zerodha, Groww and others safer
Shares held in CDSL demat accounts will become more secure due to the addition of a new feature - two-factor authentication (2FA) by Central Depository Services India Limited (CDSL). This security feature is expected to be implemented soon and will help prevent unauthorised access to your demat account. Since CDSL is set to implement this feature on the EASI/EASIEST portal, it is independent of the security features implemented by your stockbroker..live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget .sr_desc{margin:0 auto 0;} #sr_widget .sr_desc{color: #024d99;margin-top:10px;} #sr_widget .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget .sr_desc .text p, #stock_pro .sr_desc .text p{font-size:12px;font-weight:400;} Latest from the Election Surpirse
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There are two depositories in India that offer demat accounts: National Securities Depository Limited (NSDL) and CDSL. Most brokers, such as Zerodha, FYERS, Upstox, Groww, Mirae, etc., offer CDSL demat accounts to their users.
How does the new security feature work in CDSL EASI/EASIEST?
Although depository participants (usually stockbrokers) provide an interface/website/app to view and transact with your demat account, you can also use CDSL or NSDL's website to access your demat account. You need to separately create login credentials to access your demat account through NSDL (Speed-e) and CDSL's website (EASI/EASIEST).As per an email by CDSL sent on June 7, 2024, "We are in the process of implementing a new security feature for safeguarding access to your EASI/EASIEST login, which is Two Factor Authentication (2FA)."
As per the email by CDSL, after logging into your account you will receive an OTP on your registered mobile number and email address. This OTP will be valid for 5 minutes from the time of receipt. "After entering the OTP, access to your account will be authorised and the CDSL application will allow you to proceed further," as per the email by CDSL.
If you have not updated your mobile number or email address in your CDSL demat account, you can do it now when logging into your EASI or EASIEST account. As per CDSL's email, "Currently we have implemented a popup immediately after logging into account informing you to check and update your email id and mobile number."
"This 2FA is a method of authorisation necessitating two-layer authentication. 2FA adds an additional layer of protection to prevent unauthorised access to your account," said CDSL in an email dated June 7, 2024.
"From a security standpoint the addition of two-factor authentication (2FA) is very useful as it reduces the chances of fraud," says chartered accountant Bhavik Gandhi, head of operations, Mirae Asset Capital Market.
What do the EASI and EASIEST portals do?
The EASI portal can be used by you to view and cross-verify the securities held in your CDSL demat account. EASIEST is a more advanced version of the EASI portal."While the EASI portal can be used to monitor the securities holdings, on EASIEST portal apart from this you can also perform transactions for transferring shares (both off-market and on-market transfers of securities)," says Gandhi.
On June 4, 2024 CDSL's TPIN feature failed to work for some stock brokers
As per an Economic Times report, many investors were unable to sell their shares due to a system level failure at CDSL. Zerodha and Groww said that the Transaction Personal Identification Number (TPIN) authorisation feature was not functioning. You can't sell shares without a TPIN and OTP verification if you have opened the demat account using e-DIS method. This is where EASIEST portal might be of help.What are the transactions you can do on the CDSL EASIEST portal?
As per Gandhi, you can perform both, on market and off-market transfers of securities through the CDSL Electronic Access to Securities Information and Execution of Secured Transactions (EASIEST) portal."This means you can transfer securities or units from the demat account to someone else's or a broker's demat account online after adding trusted account or account of choice, similar to adding beneficiaries in net banking. You can also execute transactions online on your own rather than giving physical DIS" he says.
What are the things you can do on the CDSL EASI portal?
EASI is the acronym for Electronic Access to Securities Information and it allows you to access demat account statements and review transaction histories.As per CDSL's website, you can view and print details of your holdings and or transactions for the last seven days. You can also keep track of corporate announcements related to the securities held in your demat account. Additionally, you can view and print the valuation of your holdings based on the previous day's closing price on the Bombay Stock Exchange (BSE).
"On the Easy portal you can monitor the holdings, and on EASIEST portal, apart from monitoring the holdings, you can also perform transactions for transferring shares," says Gandhi.
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This story originally appeared on: India Times - Author:Faqs of Insurances
