Sebi to Simplify Process for Issuing Duplicate Share Documents
The Securities and Exchange Board of India (Sebi) is taking significant steps to streamline the process for issuing duplicate share certificates and related documentation, addressing investors’ concerns.
– Current Challenges: Investors currently face a cumbersome process: filing a police complaint, issuing a newspaper advertisement, and submitting separate affidavits and indemnity bonds to obtain duplicate certificates. If the securities’ value is below ₹5 lakh, these conditions can be bypassed.
– Proposed Changes: Sebi proposes:
– Increasing the threshold for obtaining simplified documentation for duplicate securities from ₹5 lakh to ₹10 lakh.
– Updating the existing limit, which has not been revised in years, to better reflect the current market dynamics, where the average portfolio size and market capitalisation have expanded significantly.
– Rationale: The adjustment aims to alleviate the procedural burden on investors, acknowledging that the existing limit no longer meets the needs of the evolving financial landscape.
In summary, these reforms by Sebi reflect a commitment to enhancing investment convenience and adapting to the realities of modern markets, making it easier for investors to manage their holdings effectively.