Sebi simplifies procedure for issuance of duplicate securities

25 May , 2022 By : Kanchan Joshi

To make issuance of duplicate securities more efficient and investor friendly, the Securities and Exchange Board of India (Sebi) has simplified the procedure and documentation requirements.

As per the regulator, it has reviewed the process followed by the registrars to an issue and share transfer agents (RTAs), and the issuer companies for issuance of duplicate securities certificates.

Sebi said that security holders have to submit a copy of FIR with details of the securities, folio number, distinctive number range and certificate numbers. Further, they also have to issue advertisement regarding loss of securities in a widely circulated newspaper.

However, if the value of securities as on the date of submission of application, along with complete documentation does not exceed Rs5 lakh, security holders don’t have to submit FIR or issue an ad.

“The applicant shall quantify the value of the securities on the basis of the closing price of such securities at any one of the recognized stock exchanges a day prior to the date of such submission in the application," Sebi said in a circular on Wednesday.

The provisions of the circular have come into force with immediate effect.

Security holders will continue to have to submit affidavit and indemnity bond as per the format prescribed by Sebi.

Further, an overseas securities holders, in lieu of FIR, has be permitted to provide self-declaration of the security certificates lost, misplaced or stolen, which will have to be notarized, apostilled or attested by the Indian Consulate or Embassy in their country of residence, along with self-attested copies of valid passport and overseas address proof.

In case of non-availability of certificate, distinctive or folio numbers, the RTA will have to provide the same, to the security holder only where the signature and the address of the security holder matches with the RTA / listed company’s records.

In case the signature and/or the address do not match, the security holder will have to first comply with the KYC procedure and then only the details of the securities shall be provided to the security holder by the RTA/listed company.