SEBI Proposes Simplified Rules for Duplicate Securities Certificates
The Securities and Exchange Board of India (SEBI) has proposed to significantly simplify the process and reduce the cost for investors obtaining duplicate securities certificates for physical holdings that have been lost. The changes are intended to modernize the process, which is currently complicated by varied rules across companies and registrars, and to align documentation requirements with the growth of the Indian securities market.
Key Proposed Changes
The main elements of SEBI’s proposal focus on increasing the threshold for simplified documentation and consolidating forms:
| Feature | Current Requirement (Up to ₹5 Lakh) | Proposed Requirement (Up to ₹10 Lakh) | Benefit |
| Simplified Documentation Limit | ₹5 lakh | ₹10 lakh | Reflects increased portfolio values and reduces procedural burden for more investors. |
| Affidavit & Indemnity | Two separate stamped documents (affidavit and indemnity bond). | Single combined Affidavit-cum-Indemnity Bond. | Reduces cost and complexity by requiring only one stamped document. |
| Mandatory FIR/Advertisement | Required for value over ₹5 lakh. | Required for value over ₹10 lakh. | Exempts a larger set of investors from filing police complaints and publishing notices. |
SEBI noted that the current ₹5 lakh limit was set several years ago and no longer reflects current market realities given the growth in market capitalization and average portfolio size.
Mandatory Dematerialization
A key component of the proposal is the push toward complete dematerialization:
All duplicate certificates issued in the future will be in dematerialized form only. This move supports SEBI’s broader regulatory objective of moving the entire Indian securities market away from legacy physical certificates, which are prone to fraud, loss, and difficult processing.
If approved, these changes will provide ease of investment, reduce costs, and ensure greater protection for investors still holding physical certificates by standardizing the documentation across the industry.
Explore Investor Protection
For deeper understanding of the the implications of the or the benefits, explore perspectives from Ranjit Jha (CEO)—known for research-driven, long-term financial analysis.
To explore how Rurash Financials supports investors with fixed-income strategies, market research, and wealth solutions, visit the official website.