Sebi’s Proposal to Simplify Duplicate Security Issuance Analyzed

The Securities and Exchange Board of India (Sebi) is making changes to how investors get duplicate copies of their stocks. They’re raising the amount of money investors need to use the simpler process. Currently, if an investor loses shares, they can get a duplicate copy if the value of the lost shares is less than Rs 5 lakh. Sebi wants to change this to Rs 10 lakh. This change is being made to make things easier for investors and to fix some problems with the current system.

Key Points

• Sebi increases duplicate security threshold to Rs 10 lakh.
• Simplifies investor compliance, reducing documentation inconsistencies.
• Addresses market growth, reflecting larger investment values.
• Introduces a common affidavit form, lowering costs.
• Standardizes newspaper advertising responsibilities for listed firms.
• Boosts dematerialization, enabling smoother duplicate issuance.

The reason for this change is that the market has grown a lot. More people are investing, and the value of the shares people hold is much higher now. Before, the Rs 5 lakh limit was okay, but it doesn’t fit the current situation. It causes extra steps for investors to follow.

To make the process easier, Sebi is suggesting a standard form that investors can use. This will reduce the paperwork and the cost of getting a duplicate. Also, the rules about advertising the lost shares will be made clearer – most companies already do this, and Sebi wants to make it official.

Getting duplicate shares now requires a lot of different documents like police reports and advertisements. Changing the limit to Rs 10 lakh means that investors can get duplicates more easily and without as much hassle. More shares being held in digital form will also increase the number of shares being dematerialised.

“This reform aims to empower investors and protect their rights in the securities market.”