CDSL Refutes Social Media Rumors About Unauthorized Share Sales

Central Depository Services (India) Limited (CDSL) denies rumors about unauthorized share sales and emphasizes reliance on official communication channels. CDSL also highlights a new security feature, two-factor authentication, to protect demat accounts. The depository reassures investors of its efforts to maintain security and confidence.

Central Depository Services (India) Limited (CDSL) on Monday dismissed circulating rumors on social media about unauthorized share sales allegedly sanctioned by the depository. CDSL categorically denied the claims, labeling them fraudulent, and is currently reporting the matter to relevant authorities for further action.

In an official statement, CDSL said, "We have been made aware of the circulation of fictitious content on social media regarding the purported sale of shares supposedly authorized by CDSL. We categorically deny any such developments. Please be advised that we are currently in the process of reporting this matter to relevant authorities." CDSL advised investors to rely only on authentic communication sources for market information, emphasizing the importance of announcements made on official stock exchange channels. This guidance aims to prevent the spread of misinformation and protect investors from potential scams.

Last month, CDSL introduced a new security feature: two-factor authentication (2FA). Designed to enhance the protection of demat accounts from unauthorized access, the 2FA requires investors to enter a one-time password (OTP) sent to their registered mobile number and email after logging into their demat account. The OTP is valid for five minutes. Once entered, it authorizes access to the account, allowing the investor to proceed with transactions.

These steps are highly beneficial to retail investors, and CDSL is actively working to maintain investor confidence. The measures also help prevent potential financial losses stemming from false information. CDSL provides services to various sub-sectors of the Indian capital market, including retail investors, institutional investors such as Alternative Investment Funds (AIF), and Mutual Funds.

(With inputs from agencies.)