SEBI Proposes Simplified Process for Duplicate Securities Certificates

Context:

SEBI aims to overhaul the procedure for issuing duplicate securities certificates to reduce paperwork, standardise documentation, and ease investor compliance. Duplicate Securities Certificates are copies of original physical certificates of financial instruments such as shares, bonds, or mutual fund units that an investor may lose, damage, or have stolen.

Current Procedure

• Governed under SEBI Master Circular (June 23, 2025).
• Investors must:
  1. File an FIR/police complaint.
  2. Publish a newspaper advertisement.
  3. Submit separate affidavit and indemnity bond on non-judicial stamp paper.
• Simplified process available only for holdings ≤ ₹5 lakh.
• Inconsistent practices across companies and registrars cause delays and higher costs.

Proposed Changes

1. Higher Threshold

• Increase the simplified documentation limit from ₹5 lakh → ₹10 lakh.
• For holdings ≤ ₹10 lakh:
  • Only one affidavit-cum-indemnity bond required.
  • Reduces procedural burden and stamp duty costs.
• Holdings > ₹10 lakh:
  • FIR or equivalent document containing folio & certificate numbers still required.

2. Unified Documentation

• Replace separate affidavit and indemnity bond with single, standardised document.
• Stamp duty applied as per claimant’s state of residence.
• Standardisation ensures consistency across registrars and companies.

3. Newspaper Advertisement

• Listed companies may issue the mandatory advertisement on behalf of investors.
• Removes the need for investors to handle this themselves.

4. Dematerialisation

• All duplicate certificates to be issued in demat form only, supporting higher demat adoption.