SEBI Doubles Limit to Rs 10 Lakh for Faster Duplicate Security Certificates

In a circular, the market regulator doubled the monetary threshold for the simplified documentation process to Rs 10 lakh from the earlier Rs 5 lakh.

With this change, investors whose lost or damaged securities are valued up to Rs 10 lakh will now have to submit fewer documents to get duplicate certificates.

SEBI said the move is aimed at reducing compliance hassles and removing inconsistencies that existed due to different practices followed by companies and registrar and transfer agents (RTAs).

As part of the new framework, Sebi has introduced a standard Affidavit-cum-Indemnity Bond format and rationalised the documentation requirements for securities valued above Rs 10 lakh.

To further ease the burden on small investors, notarisation of the Affidavit-cum-Indemnity Bond will no longer be required if the value of the securities is up to Rs 10,000.

Under the revised rules, investors holding securities worth up to Rs 10 lakh will only need to submit the standard Affidavit-cum-Indemnity Bond on appropriate non-judicial stamp paper.

Those with securities valued up to Rs 10,000 can simply submit an undertaking on plain paper.

For holdings exceeding Rs 10 lakh, investors will also have to provide documents such as a copy of the FIR, police complaint, court order or plaint that clearly mentions the details of the lost securities.

In cases where the value of securities is more than Rs 10 lakh, the listed company will also publish a weekly newspaper advertisement about the loss and may charge a minimal fee.

The timeline for processing such requests will start from the date the company receives complete documents from the investor or from the date of newspaper publication, whichever is later.

SEBI said all duplicate securities will now be issued only in demat form, a move that will also encourage dematerialisation.

It has directed all listed companies and RTAs to strictly follow the revised procedure.

- IANS