Demat account holders have until Sept 30 to enable two-factor authentication
On 14 June 2022, the National Stock Exchange (NSE) issued a directive for demat account holders to lay down a timeline enabling two-factor authentication for demat account holders and encouraged them to complete the process as soon as possible. The deadline to enable two-factor authentication for demat account holders is 30 September 2022. The Securities and Exchange Board of India (SEBI) reiterated the importance of finishing the authentication process within the given timeframe. Any delay could lead to the automated deactivation of the demat account holders and their trading accounts if the depository participant or stockbroker deems their account holders have incomplete Know Your Customer (KYC)/ account details. Read on to know more about the two-factor authentication process:
According to the NSE, demat account holders can complete their two-factor authentication procedure through biometric authentication. In today’s age, biometric authentication and knowledge cum possession factor are used to secure many accounts, networks, and systems. Biometric authentication is simple. It entails fingerprint scanning (of the index finger/ thumb), voice recognition, face recognition, and iris/ eye recognition. All you have to do is:
- Visit the profile section on your demat account through its web portal or mobile application
- Go to the Password/ Security option and click on two-factor authentication
- You will receive an OTP on your email id/ password
- Input the OTP. The account might ask you to input your fingerprint, or you might have to scan a QR code to add the account.
If biometric authentication fails, demat account holders can also authenticate their accounts through the knowledge/ possession factor. The knowledge/ possession factor is the details known only to the account holder. For instance, the knowledge factor is something like a PIN or password known only to the user, while the possession factor is a detail sent to the user by the network/ system and kept only within their knowledge. Possession factors include a one-time OTP, a security token, a card reader, authentication apps, or any other credentials that are within the user’s knowledge.
The NSE also said that the two-factor authentication is a one-time responsibility. After completing it, you can log in to your account with your login id, password, and a mandatory security image, among other requested details per your depository.
If you want to log in to your demat account post-1 October 2022, you will have to complete the authentication within the given window.
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