**SEBI Simplifies Duplicate Securities Issuance Process**
The Securities and Exchange Board of India (SEBI) has announced significant changes to streamline the process for issuing duplicate securities certificates, aiming to enhance investor protection and promote dematerialisation. This initiative, revealed in an official statement on December 25, 2023, raises the threshold for simplified documentation from ₹5 lakh to ₹10 lakh, thereby reducing the procedural burden for investors.
To facilitate easier investment, SEBI has implemented a series of measures to rationalise documentation requirements. A standardised Affidavit-cum-Indemnity bond has been introduced to simplify the process for investors. Additionally, the documentation requirements for securities valued over ₹10 lakh have been streamlined to minimize unnecessary paperwork. Notably, the requirement for notarising the Affidavit-cum-Indemnity bond has been eliminated for securities valued at up to ₹10,000.
These changes are designed to expedite the restoration of investor rights in securities and encourage a shift towards dematerialisation, as all duplicate securities issued will be in dematerialised form. This revised framework follows SEBI’s earlier circular from May 25, 2022, which outlined the previous documentary and procedural requirements for duplicate securities issuance.
SEBI has mandated that all listed companies and Registrar and Transfer Agents (RTAs) adhere strictly to the updated procedures for processing requests for duplicate securities. The new provisions are effective immediately and will also apply to ongoing requests currently in process, ensuring that investors already engaged in the system can benefit from the simplified procedures. Importantly, SEBI has clarified that if investors have submitted documents under the previous framework, they will not be required to resubmit them in the new formats.
In summary, these reforms by SEBI are set to make the process of obtaining duplicate securities more efficient and user-friendly, ultimately fostering a more robust investment environment.
**FAQ**
**What changes has SEBI made to the duplicate securities issuance process?**
SEBI has raised the simplified documentation threshold from ₹5 lakh to ₹10 lakh, introduced a standardised Affidavit-cum-Indemnity bond, and eliminated notarisation for certain securities, all aimed at streamlining the issuance process and enhancing investor protection.