Synopsis
The Securities and Exchange Board of India, SEBI, is simplifying the investment processes. A confirmation letter for title credit will no longer be required. Instead, the securities will be directly credited to investors’ dematerialized accounts. This change is intended to significantly speed up the process. The new system will come into effect on April 2, 2026.
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ETMarkets.comThe Securities and Exchange Board of India (SEBI) on Friday announced that it has removed the requirement to issue a Confirmation letter for crediting of securities and will enable direct crediting of securities to the demat accounts of investors.
In a circular issued on January 30, Sebi said the move is aimed at simplifying and streamlining the process of securities credit arising from investors’ requests for services such as issuance of duplicate share certificates, transmission, transposition, claims of unclaimed suspense accounts and securities transactions.
Currently, listed companies, registrars and transfer agents issue a confirmation letter to investors, which is then submitted to the participating depository for crediting the securities. Sebi said this process usually takes around 150 days.
Under the revised framework, listed companies, registrars and transfer agents will directly credit the securities to the investor’s dematerialized account after carrying out the required due diligence. Sebi said the change is expected to reduce the credit period of securities from around 150 days to around 30 days.
The regulator also said the new process would reduce risks associated with loss or misuse of the confirmation letter.
The provisions of the circular will come into force from April 2, 2026. Sebi has clarified that confirmation letters issued before this date can continue to be used by investors for dematerialization within the prescribed time frame.
The circular was issued as part of Sebi’s efforts to improve ease of investment and operational efficiency.
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