Why SEBI’s New "Simplified Documentation" is a Game Changer

In a major move toward "Ease of Doing Business," SEBI has recently eased the norms for issuing duplicate securities and simplified the documentation process for investors. Effective December 2025, the requirement for notarizing indemnity bonds for securities valued up to ₹10,000 has been removed. Furthermore, for securities valued up to ₹10 lakh, the document trail has been significantly rationalized. This is a big win for retail investors who often struggle with lost or physical share certificates.\n\nThis overhaul is part of SEBI’s larger push to dematerialize all remaining physical shares in the Indian market. By making the process of recovering "lost" shares easier, the regulator is encouraging long-term holders to bring their assets into the modern electronic format. The new rules also introduce a standardized "Affidavit-cum-Indemnity Bond" format, which reduces the legal jargon and makes it easier for common investors to understand.\n\nFor the IPO market, these reforms mean more liquidity. Many legacy shareholders of companies like Reliance or Tata have physical shares that they haven’t been able to trade for years. As these shares get dematerialized under the easier rules, we might see a slight increase in secondary market volumes. It also shows SEBI’s commitment to making the Indian capital market more "retail-friendly" ahead of the massive 2026 IPO wave.\n\nAdditionally, the removal of the requirement to advertise the loss of securities in newspapers (for smaller amounts) will save investors both time and money. Previously, the cost of advertising and notarization could sometimes exceed the value of the shares themselves. Now, a simple e-FIR or a self-attested affidavit is sufficient in many cases. This is a practical, tech-first approach to regulation.\n\nIn conclusion, while this may seem like a "back-end" change, it reflects the maturity of the Indian financial ecosystem. Investors should take this opportunity to audit their family portfolios and convert any physical certificates into demat form. As we head into 2026, having a clean, fully electronic portfolio is essential for participating in the fast-paced primary and secondary markets.