With the objective of further simplifying the procedure of issuance of duplicate securities and to make it more efficient and investor friendly, it was decided to review the threshold and to simplify the documentation for issuance of duplicate securities certificates. To facilitate ease of doing investment for investors, SEBI decided to increase the threshold for simplified documentation from the current Rs. Five Lakhs to Rs. Ten Lakhs.
Further, to simplify the documentation, it has been decided to:
- prescribe a standardised Affidavit-cum-Indemnity bond;
- rationalise the documentation for securities having value of more than Rs.Ten Lakhs; and
- do away with notarisation of the Affidavit-cum-Indemnity bond for cases involving securities with value up to Rs. Ten Thousand.
These measures aim at ease of investments for investors and facilitate restitution of investor rights in securities. As duplicate securities issued would necessarily be in demat mode, this will result in increased dematerialisation.
