Source: ET
Context:
The Securities and Exchange Board of India (SEBI) has simplified and standardised the process for issuance of duplicate securities certificates, doubling the threshold for simplified documentation from ₹5 lakh to ₹10 lakh to ease investor compliance.
Key Changes Announced by SEBI
- Threshold doubled: Simplified process now applicable for holdings up to ₹10 lakh
- Objective:
- Reduce compliance burden
- Speed up processing
- Promote dematerialisation
- Ensure uniform practices across listed companies and RTAs
Key Changes Introduced by SEBI
- Higher Threshold for Simplified Process
- The value limit for availing simplified documentation has been enhanced from ₹5 lakh to ₹10 lakh.
- Investors with securities valued up to ₹10 lakh will now face reduced compliance requirements.
- Standardised Documentation
- SEBI has introduced a uniform Affidavit-cum-Indemnity Bond format.
- This ensures consistency across listed companies, RTAs, and reduces investor confusion.
- Relaxation for Very Small Claims
- For securities valued up to ₹10,000, notarisation is no longer mandatory.
- A simple self-declaration / undertaking will suffice.
- Mandatory Dematerialisation
- All duplicate securities will be issued only in demat form.
- Reinforces SEBI’s long-term objective of phasing out physical securities.
- Stricter Requirements for High-Value Claims
- For securities valued above ₹10 lakh, additional safeguards remain:
- FIR / police complaint or court documents
- Newspaper advertisement, if required
- Issuer discretion for enhanced due diligence
- For securities valued above ₹10 lakh, additional safeguards remain:
- No Re-submission of Documents
- Investors who have already submitted documents under earlier rules need not resubmit them.
