New Delhi. Capital markets regulator SEBI has issued a circular to demat account holders, extending the implementation date of two-factor authentication. SEBI said in a circular that the new draft in this regard will be implemented from April 1, 2023 next year. The National Stock Exchange (NSE) had issued a circular to demat account holders on June 14, 2022, outlining a schedule for implementing two-factor authentication.
NSE has said that demat account holders will have to enable two-factor authentication by September 30, 2022. Otherwise, you will not be able to log into your account.
What is Demat Account?
Anyone who wants to invest in the stock market in India i.e. buy or sell shares, needs a demat account. It is a platform for investors to digitally hold their shares and securities like mutual funds, bonds etc. A person’s demat account is linked to his trading account.
In its circular, NSE has said that users have to choose either authentication factor with knowledge factor or possession factor for biometric authentication.
Learn how to enable two-factor authentication.
As per the circular, biometric authentication will be done using password/PIN or OTP/security token. In case biometric authentication is not possible, login to demat account should be allowed using combination of password/pin with OTP/security token.
According to NSE, two-factor authentication is a one-time task. Once you have done this, you can login to your account using your login ID, password and required security photo. Plus any additional information your depository may require.
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Tags: Business News in Hindi., Stock market
First Publication: 01 October 2022, 17:00 IST