Zerodha says CDSL TPIN authorisation issue resolved, users can initiate stock sale normally
Discount broker Zerodha confirmed the return to normalcy after an issue in CDSL TPIN authorisation restricted some of its users from executive sell-side trades normally. "The CDSL TPIN authorisation issue is resolved. You can authorise the sale of your holdings now," Zerodha posted on microblogging site X (formerly Twitter).
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Discount broker Zerodha on Wednesday advised its users to sell their holdings without CDSL authorisation temporarily, citing an "issue at CDSL across brokers". However, minutes later, it confirmed the return to normalcy in operations. "The CDSL TPIN authorisation issue is resolved. You can authorise the sale of your holdings now," Zerodha wrote on microblogging site X (formerly Twitter) at 10:51 am.
The CDSL TPIN authorisation issue is resolved. You can authorise the sale of your holdings now.
— Zerodha (@zerodhaonline) December 18, 2024
First notifying its users about the potential issue, it wrote around 10:30 am: "Due to an issue at CDSL across brokers, you may face an issue with authorising the sale of your stocks. We are in touch with CDSL to have the issue resolved at the earliest."
It also advised its users—those looking to sell their holdings—to avoid CDSL authorisation while initiating 'sell' trades for the time being.
Due to an issue at CDSL across brokers, you may face an issue with authorising the sale of your stocks. We are in touch with CDSL to have the issue resolved at the earliest.
In the meantime, you can sell your holdings without the need for CDSL authorisation.
— Zerodha (@zerodhaonline) December 18, 2024
The news comes at a time when the country's retail investor base is growing rapidly in a post-pandemic boom driven by a number of factors including favourable returns and enhanced market infrastructure as well as connectivity. Currently, there are around 20 crore registered demat accounts in the country.
Netizens puzzled
Following Zerodha's initial warning about the issue, a number of users posted queries regarding their accounts.
What is CDSL?
CDSL or Central Depository Services (India) Ltd is a securities depository that provides a slew of electronic services for the holding, transfer, and trading of securities.
What is CDSL authorisation?
CDSL authorisation is an important step that enables users to authorise the sale of their holdings in advance at the beginning of a trading day.
It is a facility that allows market participants to pre-authorise each delivery sell order placed during the day.
Normally, when selling a stock through a broker requires the user to authorise the transaction via CDSL's platform using one of the available verification methods such as OTP-based verification.
Upon verification, CDSL releases the stock from the demat account of the seller to that of the buyer.
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