SIMPLIFIED PROCESS FOR ISSUING DUPLICATE SHARE CERTIFICATES BY SEBI

SEBI’S CONSULTATION PAPER

SEBI’s consultation paper proposes to simplify and standardize the process for issuing duplicate securities certificates to enhance ease of investment.

The consultation paper proposes raising the simplified documentation threshold from Rs. 5 Lakhs to Rs. 10 Lakhs.

PRESENT REQUIREMENT FOR ISSUE OF DUPLICATE CERTIFICATE

CURRENTLY, INVESTORS MUST SUBMIT

1.A copy of FIR/police complaint/court order,

2.Publish a newspaper advertisement, and

3.Provide separate affidavit and indemnity bonds, except when the value of securities is below Rs. 5 Lakhs.

PROPOSED SIMPLIFIED DOCUMENTATION REQUIREMENTS

Investors would no longer need to furnish lengthy or complex paperwork.

The proposed framework includes:

1.Standard templates for applications

2.Streamlined affidavit/indemnity formats

3.Relaxed requirement for surety in certain cases

4. SEBI is considering reducing notarisation/legal formalities, especially for small shareholders, to improve ease of doing securities-related processes.

5. Greater use of digital modes, e-verification and online workflow, enabling quicker turnaround time by RTAs/companies.

6. Still the shareholder has to file a FIR

ENHANCED INVESTOR PROTECTION

While simplifying procedures, SEBI also proposes safeguards such as:

1.Mandatory PAN / KYC verification

2.Intimation to registered contact details before issuing a duplicate certificate

3.Strict timelines for RTAs to respond

ADVANTAGES

SEBI Says this move would simplify procedures, minimize costs to shareholders and will offer restitute rights for those who hold securities in physical forms.

R V SECKAR FCS,LLB 79047 19295