Capital markets regulator SEBI has issued a circular for demat account-holders, in which the date of implementation of two-factor authentication has been extended. 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 on June 14, 2022 for demat account-holders, in which a schedule was prepared to implement two-factor authentication.
NSE has said that demat account-holders will have to enable two-factor authentication by 30 September 2022. Otherwise, you will not be able to log in to your account.
What is Demat Account?
Any person 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 hold their shares and securities like mutual funds, bonds etc digitally. A person’s demat account is linked to his trading account.
NSE has said in its circular that users will have to select any one of the authentication factor along with the 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 the demat account should be allowed using a combination of Password/PIN with OTP/Security Token.
According to NSE, two-factor authentication is a one-time job. Once you have completed this, you can log in to your account using your login ID, password and a required security image. Also any additional information your depository may require.
