Upstox, Zerodha Glitch Today: Sell Order Authorisation Problem - What Brokerages Said

Brokerages Zerodha and Upstox have reported that customers are experiencing difficulties authorising stock sell orders due to a temporary disruption in Central Depository Services Limited (CDSL) services.

In updates shared on the social media platform X (formerly Twitter) on December 18, both firms stated that the issue is impacting CDSL services across all brokers, preventing users from completing the necessary authorisation for stock sales.

Zerodha assured its customers that it is in active communication with CDSL to resolve the problem swiftly. In the meantime, Zerodha informed users that they could proceed with selling their holdings without the usual CDSL authorisation.

Due to an issue at CDSL across brokers, you may face an issue with authorising the sale of your stocks. We are in touch with CDSL to have the issue resolved at the earliest.

In the meantime, you can sell your holdings without the need for CDSL authorisation.

— Zerodha (@zerodhaonline)

Similarly, Upstox addressed the disruption, confirming that the inability to authorise sell orders is related to the ongoing CDSL service outage. The company assured users that efforts were underway to resolve the issue, with updates expected soon.

You may not be able to authorise your sell orders because CDSL services are temporarily down across brokers. We are trying to resolve this with CDSL and will notify you with further updates.

— Upstox (@upstox)

In contrast, brokerage firm Groww stated that the issue has been successfully resolved, allowing customers to authorise new sell orders without any further hindrance. Groww confirmed that services were restored, ensuring smooth transactions moving forward.

What is CDSL TPIN and how to sell shares without it?

CDSL (Central Depository Services Limited) TPIN is a 6-digit password issued by the depository that is used to authorise the sale or purchase of securities through a broker. This password is specific to each stock and enables the broker to withdraw the shares from the seller’s demat account. It ensures that only the authorized party can complete the transaction.

Notably, the TPIN is stock-specific, meaning it cannot be used for the sale or purchase of securities other than the one for which it was issued.

Introduced in 2020, the CDSL TPIN system functions alongside the power of attorney (PoA) rule, which permits brokers to carry out transactions on behalf of their clients.

How to sell shares without CDSL TPIN

In case users do not wish to use the CDSL TPIN for authorising a sale, Zerodha has outlined an alternative method—activating the Demat Debit and Pledge Instruction (DDPI). This option, introduced by the Securities and Exchange Board of India (SEBI) in 2022, allows customers to bypass the need for a CDSL TPIN and OTP for securities sales.

Zerodha clarified that this functionality is specifically for share sales, and the DDPI can be activated both online and offline, providing flexibility for users who prefer an alternative to the traditional TPIN system.