The Securities and Exchange Board of India (SEBI) on January 30, 2026, notified regarding the Ease of Doing Investment – Doing Away with Letter of Confirmation and Direct Credit of Securities to Dematerialization Accounts.
The following has been stated:
• The circular is issued to simplify and expedite the process of crediting securities to investors’ demat accounts by eliminating the requirement of issuing a Letter of Confirmation (LOC). Earlier, investors had to submit the LOC issued by listed companies or RTAs to their Depository Participant, a process that typically took around 150 days.
• Under the revised framework, RTAs and listed companies will directly credit securities to the investor’s demat account after completing due diligence, reducing the timeline to about 30 days and minimizing risks such as loss or misuse of LOCs.
• The circular will be effective from April 02, 2026, though LOCs issued before this date may still be used within the prescribed time.
• The move aims to enhance ease of doing investment, operational efficiency, and investor protection.
[Notification no. - PR No.10/2026]
