SEBI simplifies the documentation requirements for the issuance of duplicate securities
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- Last Updated on 27 May, 2022
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Circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/70, Dated: 25.05.2022
The SEBI has further simplified the procedure and documentation requirements for the issuance of duplicate securities. The modified norms include that there shall be no requirement for submission of surety for issuance of duplicate securities. Further, the defaced certificate is required to be kept in the custody of the Company/RTA & disposed of in the manner as authorized by the Board of the Company. The duplicate securities as mandated vide SEBI Circular dated 25.01.2022 shall be issued in dematerialized mode only. The circular shall come into force with immediate effect.
The RTAs/ listed company are required to adhere to the formats and documentation specified through this Circular for all service requests related to the issuance of duplicate securities. Simplified procedure and documentation requirements for issuance of duplicate securities are as specified below –
(a) Submission by the security holder of the copy of FIR including e-FIR/Police complaint/Court injunction order/copy of plaint (where the suit filed has been accepted by the Court and Suit No. has been given), necessarily having details of the securities, folio number, distinctive number range, and certificate numbers.
(b) Issuance of advertisement regarding loss of securities in a widely circulated newspaper
(c) Submission of Affidavit and Indemnity bond as per the format prescribed by the Board. There shall be no requirement for submission of surety for issuance of duplicate securities
Further, there shall be no requirement to comply with norms w.r.t FIR and Advertisement, if the value of securities as on the date of submission of application, along with complete documentation as prescribed by the Board does not exceed Rs.5 Lakhs.
Further also, the listed company shall take a special contingency insurance policy from the insurance company towards the risk arising out of the requirements relating to the issuance of duplicate securities in order to safeguard and protect the interest of the listed company.
Click Here To Read The Full Circular
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