Has SEBI Made It Easier to Obtain Duplicate Securities?
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Synopsis
SEBI has announced a major overhaul in the issuance of duplicate securities, raising the documentation limit to Rs 10 lakh while aiming for a more straightforward process for investors. This change not only reduces paperwork but also encourages dematerialization for easier management of securities.
Key Takeaways
- SEBI has increased the simplified documentation limit to Rs 10 lakh.
- Investors need fewer documents for duplicate certificates.
- No notarization for securities valued under Rs 10,000.
- All duplicate securities will be issued in demat form.
- New procedures aim to enhance investor experience.
Mumbai, Dec 25 (NationPress) The Securities and Exchange Board of India (SEBI), the regulatory authority for the securities market, has streamlined the procedure for obtaining duplicate securities certificates, enhancing speed and accessibility for investors.
In a recent circular, SEBI announced an increase in the monetary cap for the simplified documentation process, raising it to Rs 10 lakh from the previous limit of Rs 5 lakh.
As a result of this adjustment, investors with lost or damaged securities valued up to Rs 10 lakh will now face reduced documentation requirements to secure duplicate certificates.
SEBI indicated that this initiative is designed to alleviate compliance challenges and address the inconsistencies stemming from varied practices among companies and registrar and transfer agents (RTAs).
Under the new framework, SEBI has introduced a standardized format for the Affidavit-cum-Indemnity Bond and has streamlined documentation needs for securities exceeding Rs 10 lakh.
To further support small investors, notarization of the Affidavit-cum-Indemnity Bond will no longer be necessary for securities valued up to Rs 10,000.
According to the updated regulations, investors holding securities worth up to Rs 10 lakh will only be required to submit the standard Affidavit-cum-Indemnity Bond on the appropriate non-judicial stamp paper.
For securities valued at or below Rs 10,000, an undertaking on plain paper will suffice.
For holdings surpassing Rs 10 lakh, investors must also provide documents such as a copy of the FIR, police complaints, court orders, or plaints detailing the lost securities.
In instances where the securities value exceeds Rs 10 lakh, the listed company must publish a weekly advertisement in a newspaper regarding the loss and may impose a nominal fee.
The timeline for processing such requests will commence from the date the company receives complete documents from the investor or from the date of the newspaper publication, whichever is later.
SEBI has mandated that all duplicate securities will be issued exclusively in demat form, a measure that is anticipated to promote dematerialization.
All listed companies and RTAs have been directed to adhere strictly to the revised procedures.
Point of View
It is evident that the regulatory body is making strides towards fostering a more investor-friendly environment. By simplifying the process of obtaining duplicate securities certificates, SEBI is addressing common grievances faced by investors, thereby enhancing overall market efficiency.
NationPress
25/12/2025
Frequently Asked Questions
What is the new limit for simplified documentation for duplicate securities?
The new limit for simplified documentation has been raised to Rs 10 lakh from Rs 5 lakh.
What documents are needed for securities valued up to Rs 10 lakh?
Investors will only need to submit a standard Affidavit-cum-Indemnity Bond on appropriate non-judicial stamp paper for securities valued up to Rs 10 lakh.
Is notarization required for securities valued under Rs 10,000?
No, notarization of the Affidavit-cum-Indemnity Bond is not required for securities valued up to Rs 10,000.
How will duplicate securities be issued?
All duplicate securities will be issued only in demat form.
What happens if the securities are valued over Rs 10 lakh?
For securities exceeding Rs 10 lakh, additional documentation such as a copy of the FIR or police complaint is required, and a newspaper advertisement must be published regarding the loss.
