Demat Account Holders: Two-Factor Authentication Deadline Ends Today. Know How To Enable
On June 14, the National Stock Exchange issued a notification saying the two-factor authentication can be done using biometric authentication along with the knowledge/possession factor.
New Delhi: If you hold a Demat account and want to continue using the account, then you have only a day left to enable two-factor authentication. The National Stock Exchange laid out a schedule for implementing the measure urging Demat account holders to finish the process as soon as feasible. Demat account owners must enable two-factor authentication by 30 September 2022, the NSE stated.
What did the NSE order say?
On June 14, the National Stock Exchange issued a notification saying that two-factor authentication can be done using biometric authentication along with the knowledge/possession factor. Under biometric authentication, fingerprint scanning, face recognition, or voice recognition is used, while the knowledge factor for the two-factor authentication is processed using details that are only known by the user such as password, and PIN, the NSE said.
The possession factor, on the other hand, is done with details from the user for instance OTP, security token, authenticator apps on smartphones, etc. In the case of OTP, the same should be sent to clients through both email and SMS on their registered email ID and Mobile number.
“In cases where biometric authentication is not possible, Members shall use both the aforementioned factors (Knowledge factor and Possession factor), in addition to the user ID, for 2-factor authentication (2FA). It is to be noted that the above-mentioned authentication shall be implemented on every login session by the client to IBT and STWT,” the NSE further noted.
In July, the Securities and Exchange Board of India (SEBI) released a framework for automated deactivation of trading and Demat accounts of investors in case of inadequate Know Your Client (KYC) details.
The framework came into account on August 31.
What is a Demat account?
A Demat account is required for investments in the stock market. Demat is short for ‘Dematerialised’ which means ‘converted from physical to electronic form’. An individual’s demat account is linked to his/her trading account which simplifies the process of online trading.
How to enable two-factor authentication?
The two-factor authentication is a one-time obligation. Once the process is complete, an individual can access the account using a login ID, password, and a required security image along with any additional information the depository may have asked for.
On ICICI Direct website, here is how you can enable two-factor authentication in Demat accounts:
- 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
- Type the OTP. The account might ask you to input your fingerprint, or you might have to scan a QR code to add the account.
On its website trading platform Zerodha said, “As per new exchange regulations (PDF), it is mandatory to enable TOTP (Time-based OTP) 2Factor login on your account before 30th Sep 2022, failing which, you will not be able to login to Kite."
TOTP is generated for a short time period of 20-30 seconds on an authenticator app, such as Google Authenticator, Authy, and Microsoft Authenticator.
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