In a round issued on January 30, Sebi stated the transfer is geared toward simplifying and streamlining the method of credit score of securities arising from investor service requests similar to issuance of duplicate share certificates, transmission, transposition, claims from unclaimed suspense accounts and company actions.
At current, listed firms and registrars and switch brokers problem a Letter of Affirmation to buyers, which is then submitted to the depository participant for credit score of securities. Sebi stated this course of usually takes round 150 days.
Beneath the revised framework, listed firms and registrars and switch brokers will instantly credit score securities to the investor’s demat account after finishing up the required due diligence. Sebi stated the change is predicted to scale back the timeline for credit score of securities from about 150 days to round 30 days.
The regulator additionally stated the brand new course of will scale back dangers related to loss or misuse of the Letter of Affirmation.
The provisions of the round will come into impact from April 2, 2026. Sebi clarified that Letters of Affirmation issued earlier than this date could proceed for use by buyers for dematerialisation throughout the prescribed timelines.
The round has been issued as a part of Sebi efforts to enhance ease of doing funding and operational effectivity.
