5 months ago
46
ARTICLE AD BOX
MUMBAI: To marque it easier and cost-effective for investors who person mislaid certificates of securities (shares, bonds, communal money units) to get duplicates, markets regulator Sebi is proposing an easier process with a azygous acceptable of forms.
It's besides proposing to treble the precocious bounds for issuance of the securities without an FIR and paper advertisement to Rs 10 lakh.Sebi is besides readying to bash distant with the dual request of getting an affidavit and an indemnity enslaved portion applying to get duplicate securities, and is backing a azygous affidavit-cum-indemnity bond. Such a process has been adopted by the Investor Education & Protection Fund Authority, a assemblage nether the concern ministry that deals with unclaimed stocks, communal funds etc for returning funds to the rightful owners.
According to Sebi's projected circular, astatine present, determination is simply a three-step process for issuance of duplicate securities. The capitalist needs to taxable a transcript of the FIR including e-FIR/police complaint/court injunction order/copy of the ailment with details of the securities, folio number, distinctive fig scope and certificate numbers. The capitalist besides needs to contented a paper advertisement astir the nonaccomplishment of securities.
Then the capitalist has to taxable an affidavit and an indemnity enslaved separately connected a "non-judicial stamp insubstantial of due value" successful a Sebi-prescribed format."However, if the worth of securities arsenic connected the day of submission of application, does not transcend Rs 5 lakh," the archetypal 2 steps are not required to beryllium complied with, Sebi said. "It has been gathered that owed to non-standardisation of documents and antithetic approaches followed by registrar and transportation agents (RTAs) oregon listed companies, investors consciousness the symptom of going for varied documentation for assorted listed companies.
"Sebi received feedback from investors and different stakeholders successful the strategy astir easing immoderate of these rules. It said that the existent threshold of Rs 5 lakhs for availing simplified documentation for issuance of duplicate securities was prescribed respective years ago. "Since then, the Indian securities marketplace has expanded importantly successful presumption of marketplace capitalisation, capitalist information and mean portfolio size.
As a result, the monetary worth of idiosyncratic information holdings has accrued materially." In the changed scenario, the Rs 5-lakh bounds does not bespeak existent marketplace realities and imposes an avoidable procedural load connected investors, it said.
