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HomeScience/TechnologySept 30 deadline for Demat account holders to enable 2-factor authentication

Sept 30 deadline for Demat account holders to enable 2-factor authentication

Written by Harshit Sabarwal | Edited by Sohini GoswamiNew Delhi

All demat account holders should enable two-factor authentication by September 30 to continue using their accounts.

According to a notice issued by the National Stock Exchange (NSE) on June 14, the two-factor authentication can be done using biometric authentication along with the knowledge/possession factor.

Biometric authentication uses fingerprint scanning, facial recognition or speech recognition.

The knowledge factor for the two-factor authentication is done using details known only to the user, such as password and PIN, the NSE said in its report.

The ownership factor on the other hand is done with details that only the user has e.g. OTP, security token, authenticator apps on smartphones etc. In case of OTP, the same has to be sent to customers via both email and SMS on their registered email -ID and mobile number.

“In cases where biometric authentication is not possible, Members will use both of the above factors (Knowledge factor and Possession factor), in addition to the user ID, for 2-factor authentication (2FA). It should be noted that the aforementioned authentication will be implemented at each login session by the customer at IBT and STWT,” the NSE further said in its June 14 notification.

In July, the Securities and Exchange Board of India (SEBI) released a framework for automatically deactivating investors’ trading and Demat accounts in the event of insufficient Know Your Client (KYC) data.

The framework was put into use on 31 August.

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