Explained: Sebi relaxes duplicate securities norms, increases limit and simplifies documentation. 5 things to know

The Securities and Exchange Board of India (Sebi) on Wednesday doubled the monetary threshold for the simplified documentation process for issuance of duplicate securities to Rs 10 lakh from Rs 5 lakh.Sebi’s move follows a consultation paper issued by the market watchdog in November to ease investor compliance and remove inconsistencies. The regulator said the Rs 5 lakh threshold was too low, no longer reflected current market realities and imposed an avoidable procedural burden on investors.

The changes were made through a circular issued late Wednesday and the provisions of this circular took effect immediately.

Here’s what investors need to know:

The revision will ensure that investors holding securities worth up to Rs 10 lakh will now have to file fewer documents.

1) Sebi has prescribed a standardized Affidavit-cum-Indemnity Bond format and rationalized documentation for securities valued above Rs 10 lakh.

2) To further reduce compliance burden, notarization of the Affidavit-cum-Indemnity Bond will no longer be required in cases where the value of the securities is up to Rs 10,000.

3) These measures are intended to facilitate investing for investors and to facilitate the return of investors’ rights in securities. Since duplicate issued securities are necessarily in demat mode, this will lead to greater dematerialization.

4) The Sebi circular directs all listed companies and RTAs (registrar and transfer agents) to process requests strictly in accordance with the revised procedure.5) Sebi, however, clarified that investors who have already filed documents under the old framework will not be required to resubmit them in the new formats.

Old requirements

Sebi, through its master circular dated June 23, 2025, has prescribed the documentary and procedural requirements for issuance of duplicate share certificates.

As per the previous rules, if the value of the securities was Rs 5 lakhs or more, the security holder had to file a copy of the FIR or e-FIR/police complaint or court order along with details of the securities, folio number, distinctive number range and certificate numbers.

They also had to advertise the loss of securities in a widely circulated newspaper. Moreover, the investors must also separately file an affidavit and a surety bond on non-judicial stamp paper.

The Sebi article noted that in many cases, the value of securities may be less than the stamp duty value, and therefore, payment of stamp duty on two different instruments may not make sense.

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