SEBI Proposes Doubling Simplified Threshold for Duplicate Securities to ₹10 Lakh
The Securities and Exchange Board of India (SEBI) has formally proposed to ease investor compliance and simplify procedures for obtaining duplicate securities certificates for lost physical shares. The key measure involves doubling the monetary threshold for required simplified documentation.
Key Proposal: Higher Limit for Easier Compliance
SEBI proposes to raise the value of lost securities for which simplified documentation is allowed from ₹5 lakh to ₹10 lakh.
Rationale: This update reflects the significant growth in market capitalization, investor participation, and average portfolio sizes in recent years. The current ₹5 lakh threshold is considered outdated and inconvenient for many investors.
Simplified Documentation
If the proposal is approved, investors whose lost securities are valued below ₹10 lakh (as on the date of application submission) will benefit from streamlined processes:
Consolidated Form: Investors will only need to provide a single combined Affidavit-cum-Indemnity Bond on a non-judicial stamp paper. This replaces the current requirement of submitting two separate stamped documents.
Reduced Burden: Investors in this category will be exempt from burdensome requirements such as filing a First Information Report (FIR) with the police or publishing an advertisement notice in a newspaper, which are typically required for higher-value losses.
Mandatory Dematerialization
All duplicate certificates issued under this new process will be in dematerialized form only, supporting the regulator’s broader goal of complete dematerialization of physical securities in India.
For securities valued above ₹10 lakh, the more stringent documentation, including filing an FIR or police complaint, will continue to be necessary.
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