Raghunandan Money – Investment Khushiyon Ka.

Why Is Authorization Required for Sell Transactions?

By: Akriti Tomar | Date : Mar 24, 25

Why Is Authorization Required for Sell Transactions?

Equity delivery-based trading in India follows a T+1 settlement cycle:
  • If you buy shares on Monday (T day), they are credited to your Demat Account on Tuesday (T+1 day).
  • If you sell shares on Monday (T day), you must authorize the transaction on CDSL using TPIN by T+1 day to ensure successful delivery.
What Happens If You Don’t Authorize? If you fail to authorize the sell transaction, your shares won't be transferred to the Exchange, leading to Short Delivery, which can result in penalties or auction settlement. Example: If Client A buys 10 shares of TCS from Client B, but Client B doesn’t authorize the delivery on CDSL, the Exchange considers it a Short Delivery and takes necessary actions. Need Help? Contact RMoney’s support team for personalized assistance: Kickstart Your Trading Journey! Open your Demat Account with RMoney today and trade seamlessly.  

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