Sebi’s Proposal to Simplify Duplicate Security Issuance Analyzed
The Securities and Exchange Board of India (Sebi) is making a big change to how investors get duplicate securities. They want to raise the amount of money an investor needs to prove they lost a security. Currently, it’s only Rs 5 lakh, but Sebi is proposing to double it to Rs 10 lakh.
- Sebi raises duplicate security threshold from Rs 5 lakh to Rs 10 lakh.
- Change addresses growing market size and investor holdings.
- Simplifies investor compliance and documentation processes.
- New rules reduce bureaucratic hurdles for investors.
- Common affidavit-cum-indemnity form streamlines the process.
- State-based stamp duty aligns with existing investor practices.
The reason for this change is that companies and regulators have been using different ways to handle lost securities. This makes it confusing and annoying for investors who have to provide lots of different paperwork to get a duplicate.
Also, the stock market has grown a lot since Sebi set the initial limit. People now hold more shares, and the value of those shares is much higher. Because of this growth, the old limit doesn’t really make sense anymore.
To make things easier, Sebi is proposing a standard form that investors can use. This will save them time and effort. They also want to make sure that stamp duty is based on where the investor lives, just like with the Investor Education and Protection Fund Authority.
Finally, Sebi wants companies to handle advertising when investors report lost securities. This is a common practice already, and making it official will make the process more straightforward.
“Streamlining security issuance supports investor rights and market efficiency.”
