CAIRR Update May 26, 2022

Summary of the circular issued by SEBI on 25/05/2022

To ease the procedure for issuance of duplicate securities, making it more efficient and investor friendly, SEBI has issued the revised requirements, operational guidelines and standardized formats in this regard.

The revised requirements w.r.t issuance of duplicate share certificate are:

1. The applicant shall submit a copy of FIR (including e-FIR) or other prescribed proof, containing the details of securities. If the applicant is an overseas security holder, then he is permitted to furnish a duly notarized/apostilled/attested copy of his self-declaration of the loss of share certificates.

2. Issuance of advertisement regarding loss of securities in a widely circulated newspaper.

3. Submission of Affidavit and Indemnity bond in the format prescribed in the circular.

Points 1 and 2 are not applicable if the value of securities, which shall be arrived at based on the closing price of the securities on the recognised stock exchange, as on the date of submission of application does not exceed Rs.5 Lakhs.

Further, the listed company shall also take a special contingency insurance policy to cover the risk arising out of the requirements relating to issuance of duplicate securities, protecting the interest of the listed company.