Sebi Proposes Simpler Documentation for Unlocking 'Trapped Capital'

Sebi has proposed raising the monetary threshold for simplified documentation in issuing duplicate securities to Rs 10 lakh, aimed at easing investor compliance and eliminating documentation inconsistencies. This move is expected to streamline investor procedures and accommodate India's growing securities market.

Sebi is set to ease investor procedures by proposing to double the monetary threshold for simplified documentation necessary for issuing duplicate securities from Rs 5 lakh to Rs 10 lakh. This adjustment seeks to alleviate compliance burdens amid India's growing securities landscape.

The proposed increase aligns with significant growth in market capitalization, investor participation, and average portfolio sizes in recent years. Sebi plans to introduce a common affidavit-cum-indemnity form to further streamline the process and cut costs for investors.

Highlighted as a move that will address long-standing challenges faced by retail shareholders, market experts believe this will help cultivate a more investor-friendly ecosystem while unlocking capital that remains trapped in paper formats.

(With inputs from agencies.)