Market regulator Securities and Exchange Board of India (SEBI) has further streamlined the process for issuing duplicate securities certificates, aiming to improve ease of investing and strengthen investor protection.
In a circular issued on Wednesday, SEBI increased the threshold for simplified documentation from ₹5 lakh to ₹10 lakh and standardised key documents required for processing such requests.
Key Changes Under the Revised Framework
- Securities up to ₹10 lakh:
Investors are now required to submit a single, standardised Affidavit-cum-Indemnity bond, replacing multiple documents and reducing stamp duty costs. - Securities up to ₹10,000:
Investors can submit a simple undertaking on plain paper, with no notarisation required, easing compliance for small-value holdings. - Securities above ₹10 lakh:
Existing safeguards such as FIRs, court-related documents, and mandatory newspaper advertisements will continue to apply.
Rationale Behind the Move
SEBI explained that earlier requirements resulted in unnecessary duplication and financial burden.
“Executing two different forms and paying separate stamp duty results in duplication of effort and financial inconvenience for investors. In many cases, the value of securities may be less than the stamp duty payable,” SEBI noted.
Newspaper Advertisement Requirement Formalised
The regulator has also formalised the industry practice of issuing newspaper advertisements for loss of securities. Under the new rules:
- Listed companies will issue advertisements on behalf of investors
- Companies may charge a nominal fee for this service
Immediate Applicability
The revised norms have come into effect immediately and will also apply to pending applications. Importantly, investors will not be required to resubmit documents already provided.
SEBI clarified that listed companies and registrars should not insist on re-filing documents in the new format if they have already been submitted.
Push Towards Dematerialisation
SEBI reiterated that duplicate securities will be issued only in demat form, reinforcing its push towards complete dematerialisation and reducing risks associated with physical certificates.
Market experts note that the simplified rules may reduce reliance on costly intermediaries, where service charges often exceeded the value of securities—leading many investors to abandon legitimate claims.
