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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

SEBI removes the requirement of issuance of Letter of Confirmation and to effect direct credit of securities in the demat account of the Investor

30-Jan-2026 | HO/38/13/(3)2026-MIRSD-POD/I/3763/2026

SEBI has issued a circular regarding the removal of the requirement of issuance of a Letter of Confirmation ("LOC") and to effect direct credit of securities in the dematerialisation account of the investor for the ease of doing investment and doing business, which will be effective from 02nd April, 2026. This circular has been issued in reference to the procedure specified in SEBI Master Circular for Registrars to an Issue and Share Transfer Agents for the credit of securities issued pursuant to various investor service requests, such as issuance of duplicate securities certificates, transmission, transposition, claim from unclaimed suspense account and corporate actions, in dematerialised form. By virtue of this circular, SEBI has relaxed the requirement to issue a Letter of Confirmation to simplify the process for the credit of securities pursuant to investor service requests, thereby reducing timelines, risk of loss, and pilferage. The Investor service request shall be accompanied by a copy of the latest Client Master List of the demat account, which shall not be older than two months and shall be duly attested by the Depository Participant. For giving effect to the relaxation specified above, certain amendments have been made to the paragraphs as well as the annexures of the Master Circular, as specified in Annexure-A to this Circular. Also, it shall be noted that the Letter of Confirmation issued before April 02, 2026, is required to be submitted by the investors to Depositoy Participant within 120 days from the date of issuance of the LOC. Kindly refer to the attached document for more information.

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