Market regulator SEBI has taken steps to make it easier for investors to obtain duplicate securities certificates. The move is aimed at reducing friction in the investor experience, strengthening safeguards against misuse, and nudging more holdings into dematerialised (electronic) form.
What this change means
Issuing a duplicate securities certificate is the process followed when a physical share certificate is lost, damaged, stolen or destroyed. SEBI’s latest simplification is intended to streamline that process so investors can restore their holdings faster and with less paperwork, while maintaining appropriate checks to prevent fraud.
Key aims of the simplification
- Ease of investment: Reduce procedural hurdles so that genuine investors can quickly obtain duplicate certificates and resume normal trading activity.
- Investor protection: Keep safeguards that detect and deter fraudulent claims while making legitimate claims simpler to pursue.
- Promote dematerialisation: Encourage shareholders who still hold physical certificates to convert them into electronic form, which is safer and more convenient.
Why this matters to investors
Physical share certificates can be lost, torn or stolen. Under older, more cumbersome procedures, replacing a certificate could involve lengthy verification, multiple documents and delays. Simplifying the process reduces uncertainty for individual investors and retail participants, helping them avoid missed opportunities or administrative hassles when selling, transferring or pledging shares.
Practical benefits
- Faster restoration of holdings so investors can trade or exercise rights without long waits.
- Lower administrative burden — fewer or clearer steps to follow, and reduced documentation where appropriate.
- Greater clarity about roles and responsibilities of registrars, transfer agents and issuers in handling duplicate requests.
How investors should respond
If you hold physical certificates, consider the following practical steps to benefit from the new, simpler approach:
- Contact your registrar or transfer agent: They are the primary point of contact for duplicate certificate requests. Ask about the updated process and required documents.
- Keep KYC updated: Ensure your identity and address proofs are current to avoid delays.
- Consider dematerialisation: Convert physical certificates to demat form through your depository participant to eliminate future risks related to loss or damage.
- Act quickly if you lose a certificate: Prompt reporting reduces the chance of misuse and speeds up replacement.
Safeguards and potential concerns
Simplification does not mean removing safeguards. Any streamlined process will still include checks to prevent fraud, such as identity verification, indemnity provisions or other confirmations. Investors should remain vigilant — report any suspicious activity and verify communications from registrars or issuers.
Impact on the market
By making duplicate certificate issuance easier, SEBI is helping to modernise back-office processes and lower barriers for retail investors. Over time, the combined push for simpler replacements and for converting physical certificates to electronic holdings should improve market transparency, reduce operational risk and make share ownership more accessible.
For investors, the practical takeaway is straightforward: if you hold physical certificates, reach out to your registrar or depository participant, keep your records current, and consider moving to demat to enjoy a smoother, safer experience.