Sebi Simplifies Duplicate Securities Process

In a move to ease the compliance burden on investors and remove inconsistencies, Sebi has doubled the monetary threshold for simplified documentation for duplicate securities from Rs 5 lakh to Rs 10 lakh. New measures include a streamlined process, standardized documentation, and promotion of dematerialisation.

Sebi has taken a significant step to ease investor compliance and address inconsistencies by doubling the monetary threshold for a simplified documentation process concerning duplicate securities issuance to Rs 10 lakh from Rs 5 lakh.

With immediate effect, Sebi has eased procedures for issuing duplicate securities certificates to improve efficiency and provide a more investor-friendly approach. Investors holding securities up to Rs 10 lakh need to submit fewer documents, according to Sebi's new directive. A standardised Affidavit-cum-Indemnity Bond format for securities over Rs 10 lakh has been introduced, omitting notarisation requirements for securities valued at Rs 10,000 or less.

Mandatory dematerialisation of duplicate securities is also enacted to aid in recovery of lost or damaged securities. Listed companies and RTAs have been directed to adhere to these revised processes strictly. However, those who have already submitted under the old framework will not have to resubmit under the new guidelines.

(With inputs from agencies.)