The Securities and Exchange Board of India (SEBI) on January 30, 2026, issued a circular regarding the Ease of Doing Investment and Ease of Doing Business – Doing away with requirement of issuance of Letter of Confirmation and to effect direct credit of securities in dematerialisation account of the investor.
SEBI has laid down procedures for crediting securities issued pursuant to various investor service requests—such as issuance of duplicate certificates, transmission, transposition, claims from unclaimed suspense accounts, and corporate actions—exclusively in dematerialised (Demat) form. These procedures were earlier detailed in specific paragraphs and annexures of the Master Circular for Registrars to an Issue and Share Transfer Agents (RTAs) dated June 23, 2025.
To simplify the process and reduce timelines, operational risks, and chances of loss or pilferage, SEBI has decided to eliminate the requirement of issuing a Letter of Confirmation (LOC). Instead, Depositories will develop systems that allow RTAs or listed companies to directly credit securities into an investor’s Demat account after completing the necessary due diligence.
Under the revised process, investor service requests must be accompanied by a copy of the latest Client Master List (CML) of the Demat account. The CML should not be older than two months and must be duly attested by the concerned Depository Participant (DP). Corresponding amendments have been made to the relevant paragraphs and annexures of the Master Circular to operationalise these changes.
The provisions of this circular will come into force from April 02, 2026. However, any LOC issued before this date can still be used by investors for dematerialisation, provided it is submitted to the DP within 120 days from the date of issuance. The circular has been issued under SEBI’s statutory powers to safeguard investor interests and strengthen the efficiency and regulation of the securities market.
[Circular No. HO/38/13/(3)2026-MIRSD-POD/I/3763/2026]
