SEBI‍‌‍‍‌‍‌‍‍‌ Proposes Changes to the Duplicate Securities Certificate Procedure

New Delhi, November 26, 2025: The Securities and Exchange Board of India (SEBI) has proposed a series of changes to the process for issuing duplicate securities certificates. The revisions aim to simplify compliance with regulatory requirements, make the procedure more investor-friendly, and better align it with practical, real-world scenarios.

Key Details of the Proposal

The proposal seeks to raise the maximum limit for issuing duplicate securities certificates. Previously, investors requesting a duplicate for securities valued over ₹5 lakh had to complete an extensive set of formalities, including filing an FIR, lodging a police complaint, obtaining a judicial order, and publishing a news article. This ₹5 lakh threshold was set several years ago, but with the significant growth of the Indian stock market since then, the limit is now considered too low. The board has therefore proposed increasing the threshold to ₹10 lakh. This adjustment would better reflect current market realities and reduce procedural hurdles for investors dealing with physical security certificates.

Another initiative proposed by the board is the introduction of a standardized affidavit-cum-indemnity form to ensure greater uniformity across applications. By using a single format, SEBI can streamline the entire process and reduce administrative complexity. This approach is also expected to lower the cost of obtaining duplicate securities certificates. Additionally, the board recommends that stamp duty be determined based on the state of the investor’s residence, aligning the procedure with the practices followed by the Investor Education and Protection Fund Authority.

Listed Companies May Issue Newspaper Advertisements

SEBI also addressed other aspects of the process, noting that many companies currently publish announcements on behalf of investors who have lost their physical securities to inform the public. The board has now decided to formalize this practice. Under the proposal, listed companies would be explicitly required to issue such announcements, ensuring clarity and consistency in the process.

Another major proposition is to guarantee that duplicates of the securities issued under this set of regulations are all dematerialised. This would allow the council to speed up the ongoing move to total dematerialisation.

Current Process Burdens Investors

The current procedure for obtaining duplicate securities certificates places a heavy burden on investors. They are required to complete an extensive set of formalities, including filing police complaints or FIRs, submitting affidavits, providing indemnity bonds on non-judicial stamp paper, and publishing notices in widely circulated newspapers.

SEBI recognises that this system is onerous for investors and has therefore proposed changes to ease the process. The suggested amendments aim to make it faster and simpler for investors to reclaim their rights over securities held in physical form. As these proposals are still at the consultation stage, SEBI is inviting feedback from all stakeholders and will accept public comments until 16 December 2025.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations