SEBI has proposed a major overhaul of the process for issuing duplicate securities certificates, aiming to cut paperwork, standardise documentation and ease investor compliance.
The current procedures, laid out under its June 23, 2025, master circular for registrars and share transfer agents, require investors to file an FIR or police complaint, publish a newspaper advertisement and submit separate affidavits and indemnity bonds on stamp paper. These requirements are waived only when the value of lost securities does not exceed ₹5 lakh.
The regulator said that investors have been facing inconsistent practices across listed companies and registrars, leading to delays and additional cost.
Higher threshold
SEBI has recommended raising the limit for simplified documentation to ₹10 lakh, citing the significant rise in market capitalisation, investor participation and average portfolio size in recent years. The regulator said retaining the existing ₹5-lakh limit “no longer reflects current market realities” and adds unnecessary procedural burden.
Under the proposal, investors with holdings valued up to ₹10 lakh would only need to submit a single affidavit-cum-indemnity bond on non-judicial stamp paper, as per the format prescribed by SEBI.
Public comments on the proposal have been invited until December 16.
Unified documentation
The regulator proposed replacing the existing separate affidavit and indemnity bond with a common document to reduce duplication and stamp duty costs. Stamp duty would apply as per the State of residence of the claimant.
For holdings above ₹10 lakh, investors would still need to submit an FIR or equivalent document containing security details such as folio and certificate numbers.
SEBI has also proposed formalising the market practice of listed companies issuing the mandatory newspaper advertisement on behalf of investors, rather than requiring investors to do so themselves.
The regulator said the measures are expected to ease investor effort and help restore rights in physical securities, while all duplicate certificates will be issued only in dematerialised form, supporting higher demat penetration.
Published on November 25, 2025
