SEBI eases documentation norms for duplicate securities, increases limit to Rs 10 Lakh

In an official statement on Wednesday, the regulator said it has decided to raise the simplified documentation threshold from Rs 5 lakh to Rs 10 lakh. The move is expected to significantly reduce procedural burden for investors seeking issuance of duplicate securities and make the overall process more efficient and investor-friendly.

It stated "To facilitate ease of doing investment for investors, it has been decided to increase the threshold for simplified documentation from the current Rs. Five Lakhs to Rs. Ten Lakhs"

In addition, SEBI has undertaken several steps to rationalise documentation requirements. To simplify procedures, the regulator has prescribed a standardised Affidavit-cum-Indemnity bond for investors.

Further, documentation requirements for securities valued at more than Rs 10 lakh have been rationalised to reduce unnecessary paperwork.

SEBI has also decided to do away with the requirement of notarising the Affidavit-cum-Indemnity bond in cases involving securities valued at up to Rs 10,000.

According to SEBI, these measures are aimed at facilitating investment and ensuring faster restoration of investor rights in securities.

As duplicate securities issued will necessarily be in dematerialised form, the regulator said the steps will also contribute to increased dematerialisation across the market ecosystem.

The revised framework follows SEBI's earlier circular dated May 25, 2022. The earlier circular had prescribed the documentary and procedural requirements along with thresholds for the issuance of duplicate securities certificates.

To further simplify the process, SEBI reviewed the existing norms and introduced revised thresholds and a documentation framework.

SEBI has directed that all listed companies and RTAs (Registrar and Transfer Agents) shall process requests for issuance of duplicate securities strictly in accordance with the updated procedure. The provisions of the circular have come into force with immediate effect.

Importantly, the revised provisions will also apply to ongoing requests for the issuance of duplicate securities that are currently in process. This move is intended to ensure that investors already in the system also benefit from the simplified procedures.

However, SEBI clarified that if investors have already submitted certain documents under the earlier framework, listed companies and RTAs should not insist on re-submission of such documents in the new formats. (ANI)