Under current rules, investors typically have to follow a three-step process: file an FIR or police complaint with full details of the lost certificates, publish a newspaper advertisement about the loss, and then submit both an affidavit and an indemnity bond on separate non-judicial stamp papers, in formats prescribed by Sebi. For smaller holdings valued up to Rs 5 lakh, the FIR and newspaper ad can be skipped, but the affidavit and indemnity still need to be executed separately.
Sebi now says this framework has become outdated as the Indian market and average portfolio sizes have grown. It notes that the Rs 5 lakh threshold was set several years ago and “no longer reflects current market realities,” forcing investors into avoidable paperwork even for modest holdings. The regulator also points out that different registrars and listed companies often follow different formats, which means investors face varied documentation requirements for the same type of request.
To address this, Sebi has proposed two key changes. First, it wants to double the threshold for “simplified documentation” from Rs 5 lakh to Rs 10 lakh. For holdings up to Rs 10 lakh, investors would only need to submit a single Affidavit-cum-Indemnity bond on a non-judicial stamp paper, instead of separate affidavit and indemnity documents, and would not have to file an FIR or publish a newspaper notice about the loss.
Second, for cases where the value of lost securities is more than Rs 10 lakh, Sebi proposes a more rationalised process. In such cases, the investor would submit the same combined Affidavit-cum-Indemnity, plus an FIR, police complaint, court order or plaint with full details of the securities. The newspaper advertisement about the loss would be issued by the listed company itself in a widely circulated newspaper, formalising a practice that many companies already follow.
Sebi also plans to clarify that stamp duty on the Affidavit-cum-Indemnity will be paid as per the stamp law of the state where the investor resides, aligning this process with the approach already used by the Investor Education and Protection Fund Authority for similar claims.According to the draft circular attached to the consultation paper, these relaxed rules will apply not only to fresh requests but also to ongoing applications for duplicate certificates that are currently being processed. Importantly, all duplicates issued under this framework will be in demat form only, which Sebi says will help clean up legacy physical holdings and support higher levels of dematerialisation in the market.Sebi has invited public comments on the proposals until December 16, 2025, via its online consultation portal. After reviewing feedback from investors, registrars and listed companies, the regulator is expected to issue a final circular that will amend its master circular for registrars and share transfer agents.
For investors holding old physical certificates, especially those with multiple small folios across companies, the move promises a more standard, investor-friendly and cost-effective path to securing duplicate securities and moving them into demat form.
