SEBI raises threshold to Rs 10 lakh for simplified issue of duplicate securities

To ease investment and promote dematerialisation, the Securities and Exchange Board of India (SEBI) has further simplified the process of issuing duplicate securities certificates. The market regulator said in an official statement issued on Wednesday that it has been decided to increase the limit for simplified documentation from Rs 5 lakh to Rs 10 lakh. SEBI said that this will also strengthen the protection of investors.

The new higher limit is expected to significantly reduce procedural burden for investors seeking duplicate securities certificates and make the overall process faster and more investor-friendly.

"To facilitate ease of doing investment for investors, it has been decided to increase the threshold for simplified documentation from the current Rs. Five Lakhs to Rs. Ten Lakhs," it stated.

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Documentation norms streamlined

Additionally, the regulator has taken several steps to streamline documentation requirements. To simplify procedures, SEBI has prescribed a standardised affidavit-cum-indemnity bond for investors. Further, documentation requirements for securities valued above Rs 10 lakh have been rationalised to reduce unnecessary paperwork.

Notarisation requirement eased for small-value securities

SEBI has also decided to do away with the requirement of notarisation of affidavit-cum-indemnity bond in cases involving securities up to Rs 10,000 in value. According to SEBI, these measures are aimed at facilitating investments and ensuring the speedy restoration of the rights of investors in securities.

Push for dematerialisation

The regulator said that since the duplicate securities issued will essentially be in dematerialised form, these steps will also contribute to increasing dematerialisation in the market ecosystem.

Revised framework builds on 2022 circular

The revised framework follows SEBI's earlier circular dated May 25, 2022. The earlier circular had prescribed documentary and procedural requirements as well as limits for the issuance of duplicate securities certificates.

To further simplify the process, SEBI reviewed the existing norms and introduced revised limits and a documentation framework.

New rules effective immediately

SEBI has directed that all listed companies and RTAs (Registrars and Transfer Agents) shall process requests for issuance of duplicate securities as per the updated procedure. The provisions of the circular have come into force with immediate effect.

Importantly, the amended provisions will also apply to ongoing requests for the issuance of duplicate securities that are currently under process. The move is aimed at ensuring that investors who are already on the system also benefit from the 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 the new formats.

With ANI Inputs