SEBI Eases Norms for Issuing Duplicate Securities
The Securities and Exchange Board of India has eased norms related to the issuance of duplicate securities certificates to reduce procedural hurdles for investors. Under the revised framework, the threshold for availing a simplified documentation process has been increased, allowing more investors to benefit from reduced compliance requirements when securities certificates are lost, stolen, or damaged.
SEBI has raised the value limit for simplified documentation to ₹10 lakh, up from the earlier ₹5 lakh. This means investors holding securities up to this value can now apply for duplicate certificates with fewer formalities, making the process faster and more accessible.
Standardised Documentation Introduced
As part of the changes, SEBI has introduced a standardised Affidavit-cum-Indemnity Bond format to be used uniformly across listed companies and registrar and transfer agents. For low-value securities up to ₹10,000, the requirement for notarisation of the indemnity bond has been removed, further easing compliance for small investors.
The regulator has clarified that for securities valued above ₹10 lakh, additional safeguards will continue to apply. These include submission of documents such as police complaints, FIRs, or court orders, depending on the circumstances of the loss.
Push Towards Dematerialisation
SEBI has also reiterated that all duplicate securities will be issued only in dematerialised form. This aligns with its broader objective of promoting demat holdings and reducing risks associated with physical certificates, such as loss, forgery, or damage.
Investor-Friendly Move
The regulator said the revised norms are aimed at protecting investor interests and improving ease of doing business in the capital markets. By streamlining documentation and standardising procedures, SEBI expects quicker resolution of requests and reduced grievances related to duplicate securities.
