$(function() {
    //Extends JQuery Methods to get current cursor postion in input text.
    //GET CURSOR POSITION
    jQuery.fn.getCursorPosition = function() {
        if (this.lengh == 0) return -1;
        return $(this).getSelectionStart();
    }

    jQuery.fn.getSelectionStart = function() {
        if (this.lengh == 0) return -1;
        input = this[0];

        var pos = input.value.length;

        if (input.createTextRange) {
            var r = document.selection.createRange().duplicate();
            r.moveEnd('character', input.value.length);
            if (r.text == '') pos = input.value.length;
            pos = input.value.lastIndexOf(r.text);
        } else if (typeof(input.selectionStart) != "undefined") pos = input.selectionStart;

        return pos;
    }

    //Bind Key Press event with password field    
    $("#txtpwd").keypress(function(e) {
        setTimeout(function() {
            maskPassword(e)
        }, 500);
    });

    $("#txtpwd").keydown(function(e) {
        if (e.keyCode == 8) {
            setTimeout(function() {
                maskPassword(e)
            }, 1);
        }
    });

});

function generateStars(n) {
    var stars = '';
    for (var i = 0; i < n; i++) {
        stars += '*';
    }
    return stars;
}

function maskPassword(e) {

    var text = $('#txthidden').val();
    var stars = $('#txthidden').val().length;
    var unicode = e.keyCode ? e.keyCode : e.charCode;
    $("#keycode").html(unicode);

    //Get Current Cursor Position on Password Textbox
    var curPos = $("#txtpwd").getCursorPosition();
    var PwdLength = $("#txtpwd").val().length;

    if (unicode != 9 && unicode != 13 && unicode != 37 && unicode != 40 && unicode != 37 && unicode != 39) {
        //If NOT <Back Space> OR <DEL> Then...
        if (unicode != 8 && unicode != 46) {
            text = text + String.fromCharCode(unicode);
            stars += 1;
        }
        //If Press <Back Space> Or <DEL> Then...
        else if ((unicode == 8 || unicode == 46) && stars != PwdLength) {
            stars -= 1;
            text = text.substr(0, curPos) + text.substr(curPos + 1);
        }
        //Set New String on both input fields
        $('#txthidden').val(text);
        $('#txtpwd').val(generateStars(stars));
    }

}

Setting Validate Copy Format

input{
  border:1px solid #345699;
}
input:focus{
  background:#ddd;
}

Setting Validate Copy Format