How is SEBI making it easier to obtain duplicate securities certificates?
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Synopsis
In a significant move, SEBI aims to simplify the process for investors seeking duplicate securities certificates. With the proposed increase in the threshold for relaxed rules from Rs 5 lakh to Rs 10 lakh, investors will experience reduced costs and enhanced convenience. This change marks a step towards greater accessibility in the Indian securities market.
Key Takeaways
- SEBI's proposal aims to simplify obtaining duplicate securities certificates.
- The threshold for relaxed rules is proposed to increase from Rs 5 lakh to Rs 10 lakh.
- Investors will only need to provide one affidavit-cum-indemnity bond for securities valued below Rs 10 lakh.
- Current requirements include filing a police complaint and publishing a notice.
- All future duplicates will be dematerialized, supporting the shift towards complete dematerialization.
Mumbai, Nov 25 (NationPress) The Securities and Exchange Board of India (SEBI) has put forth a proposal aimed at simplifying the process for investors to obtain duplicate securities certificates when their original certificates are lost.
The current procedure is often deemed cumbersome, as various companies and registrars implement differing regulations.
Currently, investors are required to file a police report or FIR, issue a public notice in a newspaper, and present separate affidavits and indemnity bonds. These stipulations are only relaxed if the value of the lost securities is under Rs 5 lakh.
SEBI now proposes to elevate this threshold to Rs 10 lakh. Citing the significant growth in market capitalization, investor engagement, and portfolio sizes in recent times, the regulator believes it is necessary to revise the previous limit.
"To enhance investment ease and procedural convenience for investors, it is proposed to increase the limits for simplified documentation regarding the issuance of duplicate securities from Rs 5 lakh to Rs 10 lakh," stated the market regulator.
If this proposal receives approval, investors holding securities valued at less than Rs 10 lakh will only need to submit a single combined affidavit-cum-indemnity bond.
This would replace the current necessity of providing two distinct stamped documents.
“Should the value of securities on the date of application, along with the complete documentation as outlined by the Board, not surpass Rs 10 lakh, the security holder is required to submit an Affidavit-cum-Indemnity bond in the format specified by the Board, on non-judicial stamp paper of the appropriate value as mandated by the Stamp Act of the state where the claimant resides,” the market regulator further explained.
For securities valued over Rs 10 lakh, filing an FIR or a similar complaint will still be mandatory.
SEBI has asserted that these modifications will streamline the process, lower costs for investors, and safeguard the rights of those retaining physical security certificates.
All future duplicate certificates will be issued in a dematerialized format, aligning with the broader initiative toward complete dematerialization of securities within India.
Point of View
The need for regulatory frameworks to adapt becomes imperative. This initiative is poised to enhance investor confidence and facilitate a smoother operational experience in securities management.
NationPress
25/11/2025
Frequently Asked Questions
What is the new threshold proposed by SEBI for duplicate securities certificates?
SEBI has proposed to increase the threshold for simplified documentation for duplicate securities from Rs 5 lakh to Rs 10 lakh.
What are the current requirements for obtaining duplicate securities certificates?
Currently, investors must file a police complaint or FIR, publish a notice in a newspaper, and submit separate affidavits and indemnity bonds.
Will the process change if the securities value exceeds Rs 10 lakh?
Yes, for securities valued above Rs 10 lakh, investors will still need to file an FIR or a similar complaint.
What will happen to future duplicate certificates?
All future duplicate certificates will be issued in dematerialized form as part of the broader initiative towards complete dematerialization of securities in India.
How will these changes benefit investors?
These changes will simplify the process, reduce costs for investors, and help protect the rights of those holding physical security certificates.
