The Securities and Exchange Board of India on Tuesday proposed to ease the process for issuing duplicate securities certificates to ease compliance burden and standardise documentation for investors.
Under current rules, investors must file an First Information Report (FIR) or police complaint, publish a newspaper advertisement, and submit separate affidavits and indemnity bonds for obtaining duplicate certificates -- except when the value of lost securities is below Rs 5 lakh.
Sebi noted that inconsistent practices among registrars and companies were causing inconvenience to investors. To address this, the regulator has proposed raising the threshold for simplified documentation to Rs 10 lakh, up from Rs 5 lakh, citing the growth in market capitalisation, investor participation, and portfolio values over recent years.
For cases below the new limit, investors would only need to submit a single affidavit-cum-indemnity bond, replacing the current requirement of two separate stamped documents.
For securities valued above Rs 10 lakh, Sebi has proposed that investors will still need to file an FIR or equivalent complaint.
Sebi said the measures would simplify procedures, cut costs for investors, and help restitute rights for those holding securities in physical form. All duplicate certificates issued will be in dematerialised mode, aiding the broader push toward full dematerialisation.
-- Business Standard