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SEBI Doubles Limit to Rs 10 Lakh for Easier Duplicate Securities Issuance

SEBI has significantly eased the process for issuing duplicate securities certificates by raising the simplified documentation threshold from Rs 5 lakh to Rs 10 lakh. The regulator has introduced a standardised affidavit-cum-indemnity bond and eliminated notarisation requirements for securities valued up to Rs 10,000 to reduce paperwork. These measures, which apply immediately and to ongoing requests, aim to accelerate the restoration of investor rights and promote dematerialisation. The streamlined framework is designed to enhance investor protection and make the investment process more efficient and user-friendly.

Key Points: SEBI Raises Duplicate Securities Limit to Rs 10 Lakh, Eases Rules

  • Higher Rs 10 lakh threshold
  • Standardised affidavit bond
  • No notarisation for small values
  • Applies to ongoing requests
2 min read

SEBI eases documentation norms for duplicate securities, increases limit to Rs 10 Lakh

SEBI simplifies duplicate securities issuance, raising the documentation threshold to Rs 10 lakh and removing notarisation for small amounts to boost investor ease.

"To facilitate ease of doing investment for investors - SEBI Official Statement"

Mumbai, December 25

Market regulator Securities and Exchange Board of India has further simplified the procedure for issuing duplicate securities certificates to enhance ease of investment, strengthen investor protection, and promote dematerialisation.

In an official statement on Wednesday, the regulator said it has decided to raise the simplified documentation threshold from Rs 5 lakh to Rs 10 lakh. The move is expected to significantly reduce procedural burden for investors seeking issuance of duplicate securities and make the overall process more efficient and investor-friendly.

It stated "To facilitate ease of doing investment for investors, it has been decided to increase the threshold for simplified documentation from the current Rs. Five Lakhs to Rs. Ten Lakhs"

In addition, SEBI has undertaken several steps to rationalise documentation requirements. To simplify procedures, the regulator has prescribed a standardised Affidavit-cum-Indemnity bond for investors.

Further, documentation requirements for securities valued at more than Rs 10 lakh have been rationalised to reduce unnecessary paperwork.

SEBI has also decided to do away with the requirement of notarising the Affidavit-cum-Indemnity bond in cases involving securities valued at up to Rs 10,000.

According to SEBI, these measures are aimed at facilitating investment and ensuring faster restoration of investor rights in securities.

As duplicate securities issued will necessarily be in dematerialised form, the regulator said the steps will also contribute to increased dematerialisation across the market ecosystem.

The revised framework follows SEBI's earlier circular dated May 25, 2022. The earlier circular had prescribed the documentary and procedural requirements along with thresholds for the issuance of duplicate securities certificates.

To further simplify the process, SEBI reviewed the existing norms and introduced revised thresholds and a documentation framework.

SEBI has directed that all listed companies and RTAs (Registrar and Transfer Agents) shall process requests for issuance of duplicate securities strictly in accordance with the updated procedure. The provisions of the circular have come into force with immediate effect.

Importantly, the revised provisions will also apply to ongoing requests for the issuance of duplicate securities that are currently in process. This move is intended to ensure that investors already in the system also benefit from the simplified procedures.

However, SEBI clarified that if investors have already submitted certain documents under the earlier framework, listed companies and RTAs should not insist on re-submission of such documents in the new formats.

- ANI

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Reader Comments

P
Priya S
Good step towards ease of investing. The focus on dematerialisation is crucial. Physical certificates are a relic of the past and cause so many problems. Hope this pushes more people to open Demat accounts and keep their holdings safe and digital.
R
Rohit P
While simplifying norms is good, I hope the RTAs and company registrars implement this smoothly. Sometimes these circulars are issued but the ground reality doesn't change for weeks. The instruction to apply it to ongoing requests is a thoughtful touch.
S
Sarah B
As an NRI investor, dealing with paperwork from abroad is incredibly difficult. Removing notarisation for small amounts (up to ₹10k) and standardising forms is a huge relief. Makes me more confident about investing in Indian markets.
V
Vikram M
SEBI is doing a decent job lately with investor-friendly measures. However, I respectfully think they should also look at simplifying the process for *first-time* Demat account opening for senior citizens. That's still quite cumbersome for my father.
K
Karthik V
Finally! The ₹5 lakh limit felt outdated. With inflation and market growth, many portfolios have small holdings that cross that mark. Raising it to ₹10 lakh aligns with current realities. Less red tape is always better for the markets. 🚀

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