SEBI Proposes Relaxed Norms for Issuing Duplicate Securities Certificates

SEBI has released a proposal to make it easier for investors to get duplicate securities certificates when physical documents are lost or damaged. The suggestion is to reduce the amount of paperwork and cut the differences in how companies and registrars currently handle such requests. 

What Investors Currently Need to do 

Under the existing process, investors must file a police FIR or complaint, publish a notice in a newspaper, and submit two separate stamped documents, an affidavit and an indemnity bond to request a duplicate certificate.  

These steps are currently waived only when the value of the lost securities is below ₹5 lakh. SEBI observed that the documentation varies from one entity to another, often causing delays and inconvenience. 

Proposed Change in Value Limit 

SEBI has suggested raising the document relaxation limit from ₹5 lakh to ₹10 lakh. The regulator has linked this revision to the rise in market capitalisation, higher participation in the markets, and the overall improvement in investor portfolios over the years.  

With the new limit, investors would not need separate documents if the value of the lost securities is below ₹10 lakh. 

Single Document Instead of 2 

If the proposed rules come into effect, investors below the ₹10 lakh limit would only need to submit a single affidavit-cum-indemnity bond, replacing the current requirement of 2 individually stamped papers. This step is expected to reduce effort, paperwork, and related costs for investors seeking duplicates. 

For securities valued above ₹10 lakh, the current rules would continue. Investors would still need to file an FIR or equivalent complaint with the authorities. This would remain in place for higher-value cases. 

Duplicate Certificates to be Issued in Demat Form 

SEBI has also stated that all duplicate certificates issued under the revised framework will be provided only in dematerialised form, instead of paper certificates. This supports the shift from physical securities to demat accounts. 

Read More: PSU Banks Now Control Half of India’s Home Loan Market! 

Conclusion 

The proposed framework is to reduce paperwork, bring uniformity, and make duplicate certificate requests easier, especially for cases below ₹10 lakh. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.