Starting today, the Securities and Exchange Board of India (Sebi) has raised the limit for issuing duplicate securities from Rs 5 lakh to Rs 10 lakh, meaning investors with smaller holdings will face a lot less paperwork.
What the new rule does
- Investors holding securities worth up to Rs 10 lakh can now use a simplified affidavit‑cum‑indemnity bond without extra documents.
- For holdings up to Rs 10 000, the bond does not even need notarisation.
- Companies and their registrar‑transfer agents must follow the updated procedure immediately.
How it helps investors
- Fewer forms and no need for police FIRs or newspaper advertisements for most small investors.
- Lower stamp‑duty costs because the process no longer requires multiple stamped instruments.
- Encourages faster conversion of duplicate shares into demat form, boosting overall dematerialisation.
Old requirements in brief
Earlier, if the value of the lost or stolen securities was Rs 5 lakh or more, investors had to:
- File a police FIR or court order.
- Publish a loss notice in a widely‑circulated newspaper.
- Submit separate affidavit and indemnity bond on non‑judicial stamp paper.
These steps often cost more in stamp duty than the securities themselves.
What investors need to do now
- If you already submitted documents under the old system, you do not need to re‑file them.
- For any new duplicate‑security request, follow the new simplified format and skip notarisation if the value is under Rs 10 000.
Remember, this is just an overview of the rule change. Always check the latest guidelines or consult a financial adviser before taking action.