SEBI eases documentation norms for duplicate securities, increases limit to ₹10 Lakh
Mumbai (Maharashtra) [India]December 25 (ANI): Market regulator Securities and Exchange Board of India (SEBI) has further simplified the procedure for issuing duplicate security certificates to improve ease of investment, strengthen investors’ protection and promote dematerialisation.
In an official statement on Wednesday, the regulator said it had decided to raise the threshold for simplified certification. ₹5 lakhs ₹10 lakhs. This move is expected to significantly reduce the procedural burden for investors seeking the issuance of replica securities and make the overall process more efficient and investor-friendly.
“In order to make investing easier for investors, it has been decided to increase the simplified certification threshold from the current Rs. Five Lakh to Rs. Ten Lakh,” he said.
In addition, SEBI has taken various steps to rationalize documentation requirements. In order to simplify the procedures, the regulator has prescribed a standard Sworn Indemnity bond for investors.
Additionally, documentation requirements for multiple value securities ₹10 lakh has been rationalized to reduce unnecessary paperwork.
SEBI has also decided to eliminate the requirement for notarization of Affidavits in case of securities worth up to Rs. ₹10,000.
According to SEBI, the aim of these measures is to facilitate investment and ensure faster restoration of investor rights in securities.
Since the duplicate securities issued will necessarily be in dematerialized form, the regulator said the steps will also contribute to increased dematerialization in the market ecosystem.
The revised framework follows SEBI’s previous circular dated May 25, 2022. The earlier circular had specified the thresholds as well as documentary and procedural requirements for the issuance of duplicate securities certificates.
To further simplify the process, SEBI has reviewed the existing norms and introduced revised thresholds and a documentation framework.
SEBI has directed that all listed companies and RTAs (Registrars and Transfer Agents) shall process requests for issuance of duplicate securities strictly in accordance with the updated procedure. The provisions of the Circular entered into force immediately.
Importantly, the revised provisions will also apply to ongoing requests for duplicate securities issuances that are already in process. This move aims to ensure that investors already in the system will also benefit from 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 new formats. (MOMENT)
