In a significant move aimed at simplifying processes for market participants, the Securities and Exchange Board of India (SEBI) has announced a major relaxation in the norms for issuing duplicate securities certificates. The market regulator's latest decision is designed to enhance the ease of investing, provide stronger protection for investors, and accelerate the shift towards a dematerialised securities ecosystem.
Key Changes: Higher Threshold and Simplified Paperwork
The most notable change announced on Wednesday, December 25, 2025, is the increase in the financial threshold for simplified documentation. SEBI has raised this limit from the existing ₹5 lakh to ₹10 lakh. This revision means that investors seeking duplicate certificates for securities valued up to ten lakh rupees will now face a much-reduced procedural burden.
To further rationalise the process, SEBI has introduced a standardised Affidavit-cum-Indemnity bond for all investors. In a major relief for small investors, the regulator has completely eliminated the requirement for notarisation of this bond in cases where the securities involved are valued at ₹10,000 or less. For securities exceeding the new ₹10 lakh threshold, documentation requirements have also been streamlined to cut down on unnecessary paperwork.
Immediate Implementation and Broader Impact
SEBI has directed that all listed companies and their Registrar and Transfer Agents (RTAs) must process requests for duplicate securities strictly according to this updated framework. The provisions of the circular are effective immediately. Importantly, the simplified rules will also apply to ongoing requests that are currently under process, ensuring that investors already in the system can benefit from the eased norms without delay.
The regulator has provided a crucial clarification to prevent inconvenience: if investors have already submitted documents as per the old May 2022 circular, companies and RTAs should not ask for those documents to be re-submitted in the new formats. This step ensures a smooth transition between the old and new regimes.
Driving Dematerialisation and Protecting Investor Rights
According to SEBI, these measures are strategically aimed at facilitating investment and ensuring the faster restoration of investor rights in cases of lost or damaged securities. A key aspect of the new framework is that all duplicate securities issued under these relaxed norms will necessarily be in dematerialised (demat) form. This mandate is expected to significantly boost dematerialisation rates across the entire market landscape.
This revised framework updates the earlier guidelines issued on May 25, 2022. By reviewing and simplifying the documentation and procedural hurdles, SEBI continues its push to create a more efficient, transparent, and investor-friendly capital market in India. The move is widely seen as a positive step that balances necessary safeguards with operational ease for millions of investors.
