Sebi Proposes Doubling Threshold for Simplified Securities Documentation

Sebi has suggested raising the threshold for simplified securities documentation to Rs 10 lakh to ease investor compliance and eliminate inconsistency in records. This increase aligns with current market conditions and aims to streamline the documentation process for duplicate securities.

The Securities and Exchange Board of India (Sebi) has proposed increasing the monetary threshold for simplified documentation necessary to issue duplicate securities from Rs 5 lakh to Rs 10 lakh. This initiative aims to ease investor compliance and eliminate discrepancies across different companies.

Previously set several years ago, the Rs 5 lakh limit has become outdated due to significant growth in India's securities market, including increases in market capitalisation and average portfolio sizes. Sebi observed that these market expansions necessitate an updated threshold to match current investor circumstances.

In its consultation paper, Sebi also suggested the adoption of a common affidavit-cum-indemnity form and proposed that listed companies be responsible for issuing advertisements on behalf of investors reporting a loss of securities. This measure is expected to ease the documentation process and promote increased dematerialisation of securities.

(With inputs from agencies.)