{"id":2524,"date":"2026-01-31T02:51:04","date_gmt":"2026-01-30T18:51:04","guid":{"rendered":"http:\/\/longzhuplatform.com\/?p=2524"},"modified":"2026-01-31T02:51:04","modified_gmt":"2026-01-30T18:51:04","slug":"sebi-simplifies-securities-credit-with-direct-demat-move-from-april-cuts-wait-by-120-days","status":"publish","type":"post","link":"http:\/\/longzhuplatform.com\/?p=2524","title":{"rendered":"SEBI simplifies securities credit with direct demat move from April, cuts wait by 120 days"},"content":{"rendered":"<p><\/p> <div> <p lang=\"EN-GB\" paraeid=\"{d8fdc4e7-b5a7-4b29-abc1-e7429eadf691}{238}\" paraid=\"1166959563\" xml:lang=\"EN-GB\">In a major step towards enhancing investor convenience and improving operational efficiency, the Securities and Exchange Board of India (SEBI) has issued a new circular\u00a0eliminating\u00a0the need for issuance of a\u00a0Letter of Confirmation\u00a0(LOC) for various investor service requests. The move is part of SEBI\u2019s broader initiative aimed at easing the process of doing investment and business in the Indian securities market.\u00a0<\/p> <p aria-level=\"4\" lang=\"EN-GB\" paraeid=\"{d8fdc4e7-b5a7-4b29-abc1-e7429eadf691}{246}\" paraid=\"1651335494\" role=\"heading\" xml:lang=\"EN-GB\"><strong>Key changes announced<\/strong>\u00a0<\/p> <p lang=\"EN-GB\" paraeid=\"{d8fdc4e7-b5a7-4b29-abc1-e7429eadf691}{248}\" paraid=\"42973774\" xml:lang=\"EN-GB\">Under the current system, listed companies and their\u00a0Registrars to an Issue and Share Transfer Agents\u00a0(RTAs) issue an LOC for investor service requests \u2014 such as:\u00a0<\/p> <ul> <li lang=\"EN-GB\" paraeid=\"{d8fdc4e7-b5a7-4b29-abc1-e7429eadf691}{250}\" paraid=\"760289605\" xml:lang=\"EN-GB\">Issuance of duplicate security certificates\u00a0<\/li> <li lang=\"EN-GB\" paraeid=\"{d8fdc4e7-b5a7-4b29-abc1-e7429eadf691}{252}\" paraid=\"187540845\" xml:lang=\"EN-GB\">Transmission and transposition of securities\u00a0<\/li> <li lang=\"EN-GB\" paraeid=\"{d8fdc4e7-b5a7-4b29-abc1-e7429eadf691}{254}\" paraid=\"903703093\" xml:lang=\"EN-GB\">Claims from unclaimed suspense accounts\u00a0<\/li> <li lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{1}\" paraid=\"452518035\" xml:lang=\"EN-GB\">Corporate actions\u00a0<\/li> <\/ul> <p lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{3}\" paraid=\"280499316\" xml:lang=\"EN-GB\">This LOC is then\u00a0submitted\u00a0by investors to their Depository Participant (DP) to\u00a0facilitate\u00a0credit of securities to their demat accounts \u2014 a process that can take up to 150 days.\u00a0<\/p> <p lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{5}\" paraid=\"301079457\" xml:lang=\"EN-GB\">To simplify and accelerate this workflow, SEBI has now decided to do away with the LOC requirement entirely.\u00a0<\/p> <p aria-level=\"4\" lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{7}\" paraid=\"2127747138\" role=\"heading\" xml:lang=\"EN-GB\"><strong>New framework and benefits\u00a0<\/strong><\/p> <p lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{9}\" paraid=\"1030259024\" xml:lang=\"EN-GB\">Under the revised framework:\u00a0<\/p> <ul> <li lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{11}\" paraid=\"969700024\" xml:lang=\"EN-GB\">RTAs and listed companies will directly credit securities to the investor\u2019s demat account.\u00a0<\/li> <li lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{13}\" paraid=\"1862283739\" xml:lang=\"EN-GB\">This will be done after necessary due diligence, removing the intermediate step of issuing and\u00a0submitting\u00a0the LOC.\u00a0<\/li> <li lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{15}\" paraid=\"1776838839\" xml:lang=\"EN-GB\">The new process is expected to reduce the credit timeline from 150 days to approximately 30 days.\u00a0<\/li> <li lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{17}\" paraid=\"679080143\" xml:lang=\"EN-GB\">Risks related to loss, misuse, or pilferage of LOCs will also be eliminated.\u00a0<\/li> <\/ul> <p aria-level=\"4\" lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{19}\" paraid=\"741934550\" role=\"heading\" xml:lang=\"EN-GB\"><strong>Implementation timeline<\/strong>\u00a0<\/p> <ul> <li lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{21}\" paraid=\"306586754\" xml:lang=\"EN-GB\">The new provisions will come into effect from April 2, 2026.\u00a0<\/li> <li lang=\"EN-GB\" paraeid=\"{3e164ead-5b53-439d-b3aa-101116ef93e9}{23}\" paraid=\"1011157049\" xml:lang=\"EN-GB\">Any LOCs issued before this date will remain valid and can be used for dematerialization within the existing timeline.\u00a0<\/li> <\/ul> <p><strong>Objective and Broader Implications\u00a0<\/strong><\/p> <p>SEBI has introduced this circular as part of its continued efforts to make investing in the securities market more seamless and investor-friendly. By removing the requirement for a Letter of Confirmation (LOC) and facilitating the direct credit of securities into demat accounts, SEBI aims to simplify procedures that have traditionally been cumbersome and time-consuming.\u00a0<\/p> <p>This reform is expected to significantly enhance the ease of doing investment in India by reducing delays and eliminating unnecessary steps in the dematerialisation process. Furthermore, it contributes to greater operational efficiency for both listed companies and RTAs, reducing administrative burdens and chances of errors or losses.\u00a0<\/p> <p>Most importantly, the move strengthens investor protection by minimising the risks associated with physical paperwork \u2014 such as loss, pilferage, or misuse of LOCs \u2014 thereby increasing trust in the demat ecosystem. Overall, the initiative aligns with SEBI\u2019s broader agenda of modernizing market infrastructure and improving the investor experience.<\/p> <\/div> <p><i>Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.<\/i><\/p> <p>SEBI demat rule 2026, SEBI LOC removal circular, direct credit to demat account, ease of doing investment SEBI, securities credit process SEBI, April 2026 SEBI circular, investor protection SEBI demat, SEBI duplicate certificate process, transmission of shares new rule, SEBI RTA demat update#SEBI #simplifies #securities #credit #direct #demat #move #April #cuts #wait #days1769799064<\/p> ","protected":false},"excerpt":{"rendered":"<p>In a major step towards enhancing investor convenience and improving operational efficiency, the Securities and Exchange Board of India (SEBI) has issued a new circular\u00a0eliminating\u00a0the need for issuance of a\u00a0Letter of Confirmation\u00a0(LOC) for various investor service requests. The move is part of SEBI\u2019s broader initiative aimed at easing the process of doing investment and business [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2525,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[1491,7358,1119,330,659,7364,2050,7355,7356,7359,1526,1225,7353,7360,7354,7362,3941,7357,7363,7361,7365],"class_list":["post-2524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-marketing","tag-april","tag-april-2026-sebi-circular","tag-credit","tag-cuts","tag-days","tag-demat","tag-direct","tag-direct-credit-to-demat-account","tag-ease-of-doing-investment-sebi","tag-investor-protection-sebi-demat","tag-move","tag-sebi","tag-sebi-demat-rule-2026","tag-sebi-duplicate-certificate-process","tag-sebi-loc-removal-circular","tag-sebi-rta-demat-update","tag-securities","tag-securities-credit-process-sebi","tag-simplifies","tag-transmission-of-shares-new-rule","tag-wait"],"acf":[],"_links":{"self":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/2524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2524"}],"version-history":[{"count":0,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/2524\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/media\/2525"}],"wp:attachment":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2524"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}