Sebi proposes easier norms for issuing duplicate securities certificates

Sebi proposes easing rules for issuing duplicate securities certificates by raising the simplified documentation limit to ₹10 lakh, reducing paperwork for investors, supporting full dematerialisation

The Securities and Exchange Board of India (Sebi) on Tuesday proposed easing the process for issuing duplicate securities certificates to reduce the compliance burden and standardise documentation for investors.

 

Under current rules, investors must file an FIR or police complaint, publish a newspaper advertisement, and submit separate affidavits and indemnity bonds for obtaining duplicate certificates — except when the value of lost securities is below Rs 5 lakh.

 

Sebi noted that inconsistent practices among registrars and companies were causing inconvenience to investors.

 

To address this, the regulator has proposed raising the threshold for simplified documentation to Rs 10 lakh, up from Rs 5 lakh, citing the growth in market capitalisation, investor participation, and portfolio values in recent years.

 

For cases below the new limit, investors would only need to submit a single affidavit-cum-indemnity bond, replacing the current requirement of two separate stamped documents.

 

For securities valued above Rs 10 lakh, Sebi has proposed that investors will still need to file an FIR or equivalent complaint.

 

Sebi said the measures would simplify procedures, cut costs for investors, and help restitute rights for those holding securities in physical form. All duplicate certificates issued will be in dematerialised mode, aiding the broader push towards full dematerialisation.