Sebi is considering simplifying the paperwork and proposes a higher threshold of Rs 10 lakh for duplicate share certificates

The Securities and Exchange Board of India (Sebi) on Tuesday proposed to increase the simplified documentation limits for issuance of duplicate securities from Rs 5 lakhs to Rs 10 lakhs. The market regulator believes that the current threshold is too low and no longer reflects current market realities, while imposing avoidable procedural burdens on investors.The Sebi paper aims to remove the hardships faced by investors due to non-standardization of documents and different approaches taken by RTAs and listed companies. This move is intended to enhance ease of investment and provide procedural convenience to investors whose original certificates have been lost.

“To provide ease of investment and procedural convenience to the investors, it is proposed to increase the limits for simplified documentation for issuance of duplicate securities from Rs 5 lakh to Rs 10 lakh,” the market regulator said.In addition, to simplify documentation and reduce the costs of obtaining duplicate securities, the market regulator has proposed a common form for affidavit and indemnity.

“It is also proposed to clarify that stamp duty will apply depending on the investor’s state of residence. The same will be in line with the approach taken by the Investor Education and Protection Fund Authority,” the consultation document said.

The consultation document further proposed that listed companies should place advertisements in newspapers on behalf of their investors about the loss of securities.Current requirementsSebi, through its master circular dated June 23, 2025, has prescribed the documentary and procedural requirements for issuance of duplicate share certificates.

As per the current rules, if the value of the securities is Rs 5 lakhs or more, the security holder has 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 are also required 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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