Explained: What SEBI’s proposal to simplify issuance of duplicate securities means for investors

Markets regulator SEBI has proposed easing and standardising the process for investors seeking duplicate securities certificates.

The Securities and Exchange Board of India (SEBI) on Tuesday released a consultation paper seeking public comments on changes intended to make the replacement of lost, stolen or damaged physical securities simpler.

Why is SEBI proposing changes?

SEBI said investors currently face varied documentary requirements across listed companies and registrars, which often leads to procedural delays and inconvenience

Under the existing rules, investors are often required to submit FIR, newspaper advertisement, affidavit and indemnity bond, to obtain duplicate certificates.

Requirements can vary depending on the registrar or listed company, causing delays and confusion.

SEBI said it received feedback that non-standard documentation and differing practices among registrars and companies inconvenience investors.

What is changing?

The existing ₹5 lakh limit for availing simplified documentation was set several years ago and, according to SEBI, no longer reflects market realities.

The limit for availing a simplified process, which does not require an FIR or newspaper advertisement, would be raised to ₹10 lakh from ₹5 lakh.

“To provide ease of investment and procedural convenience, it is proposed to increase the limits for simplified documentation for issuance of duplicate securities from ₹5 lakh to ₹10 lakh,” the paper said.

SEBI has also suggested replacing the currently mandated separate affidavit and indemnity bond with a single, standard affidavit-cum-indemnity document to cut duplication and stamp duty costs. Stamp duty would apply based on the investor’s state of residence.

The regulator has proposed formalising the industry practice of listed companies issuing newspaper advertisements on behalf of investors reporting loss of physical certificates.

Who will be affected?

The proposal applies to investors holding securities in physical form and requesting duplicates, as well as listed companies and registrar and transfer agents (RTAs). Duplicate certificates issued would only be in dematerialised form, supporting the ongoing shift away from physical securities.

When will changes take effect?

The measures are not yet final. SEBI has invited public comments until December 16, 2025. Once approved, the revised norms would take effect immediately and also apply to duplicate-certificate requests currently being processed.