In a significant move aimed at reducing compliance burdens for investors, the Securities and Exchange Board of India (Sebi) announced a major relaxation in the process for obtaining duplicate securities certificates. The market regulator has effectively doubled the monetary threshold for a simplified documentation procedure.
Key Regulatory Change for Investors
The decision, announced on Wednesday, raises the limit for the simplified process from Rs 5 lakh to Rs 10 lakh. This means investors seeking duplicate share certificates, debentures, or other securities valued up to Rs 10 lakh can now follow a less cumbersome documentation route. The step is designed to ease investor experience and remove inconsistencies that existed in the previous framework.
Standardized Format for High-Value Securities
For securities valued above the new Rs 10 lakh threshold, Sebi has taken another proactive step. The regulator has now prescribed a standardized affidavit-cum-indemnity bond format. This uniform format is expected to bring much-needed clarity and standardization to the process, reducing delays and potential errors for high-value transactions.
Rationale and Expected Impact
The primary goal of these changes is to streamline operations and enhance ease of doing business for market participants. By increasing the monetary limit, Sebi acknowledges the need to reduce procedural hurdles for a larger segment of investors. The introduction of a standard bond format for higher values aims to eliminate ambiguity and ensure a consistent approach across all registered entities and registrars.
This regulatory update is part of Sebi's ongoing efforts to simplify norms and make India's capital markets more investor-friendly. The changes are likely to be welcomed by individual investors, share transfer agents, and companies alike, as they promise to cut down paperwork and processing time for a common yet critical service.
