Actually, a circular was issued by the National Stock Exchange (NSE) on 14 June. Accordingly, it is very important for demat account holders to enable two-factor authentication by September 30, 2022. If you do not enable Two-Factor Authentication, you will not be able to login to your Demat account from 1st October 2022.
New Delhi. If you are a Demat account holder and through this you buy or sell shares in the stock market, then this news is very important for you. The National Stock Exchange (NSE) had issued a circular on 14 June. Accordingly, it is very important for demat account holders to enable two-factor authentication by September 30, 2022. If you do not enable Two-Factor Authentication, you will not be able to login to your Demat account from 1st October 2022.
NSE said in this circular that the account holder will have to use biometric authentication as an authentication factor to login to his demat account. Along with this, the other way can be the knowledge factor. This can be a password, PIN or any position factor, which is only known to the user.
OTP will be received on both email and SMS
Let us tell you that the clients will get the one-time password i.e. OTP on the smartphone or desktop through both email and SMS. In cases where biometric authentication is not possible, the members will have to use the knowledge factor. It can contain Password/PIN, Possession Factor (OTP/Security Token) and User ID.
Experts on this matter say that most of the stockbrokers are using the second authentication factor. This does not include the password. However, both the password and the PIN are knowledge factors. These cannot be considered as two separate factors for authentication.
Two-factor authentication required from 30 September
NSE and BSE have referred to SEBI’s circular dated December 3, 2018 in this regard. In this circular related to cyber security, a kind of difference has been told regarding authentication factors. Now NSE has made two-factor authentication mandatory for login from 30th September.
Zerodha also shared information on its website.
Stock broker Zerodha also shared information about this on its website. It has said that as per the new regulations of the exchange, TOTP, two factor authentication is required for login into the demat account before September 30, 2022. Otherwise, customers will not be able to use the online trading platform.
How to enable two-factor authentication
Let us tell you that if you want to enable two-factor authentication in your demat account, then you will have to use biometric authentication with password, PIN or OTP security token. After this login to the demat accounts will be allowed using the password pin along with the OTP security token. After this Upstox users will have to enter OTP and PIN. On the other hand, in case of login in mobile, biometrics will have to be used along with OTP or PIN. Along with this, to receive TOTP, you have to install Google Authenticator app or Microsoft Authenticator app in your mobile and PC.
