Circular no. HO/38/13/(3)2026-MIRSD-POD/I/3763/2026; Dated: 30.01.2026
The Securities and Exchange Board of India (SEBI) has simplified the process for issuance and transfer of securities by dispensing with the requirement of issuing a Letter of Confirmation (LoC). Going forward, securities may be credited directly to investors’ demat accounts, reducing procedural steps and timelines.
1. Direct Credit of Securities to Demat Accounts
Under the revised framework, the Registrar and Transfer Agent (RTA) or the Issuer Company is required to verify and process investor service requests and issue securities directly in dematerialised form to the demat account of the securities holder or claimant.
Such direct credit must be completed within 30 days from the date of receipt of a valid service request.
2. Documentation Requirement – Client Master List (CML)
Investor service requests must be accompanied by a copy of the latest Client Master List (CML) of the demat account. The CML:
- must not be older than two months, and
- must be duly attested by the Depository Participant (DP).
This requirement ensures accuracy of demat account details prior to credit of securities.
3. Initiation of Demat Conversion Request
After verifying and processing the service request and supporting documents, the RTA or Issuer Company must initiate the dematerialisation (demat conversion) request in the depository system. This step enables the direct credit of securities into the demat account of the securities holder or claimant.
4. Intimation on Successful Dematerialisation
Upon confirmation of the demat conversion request, the depositories, RTAs, or listed companies, as applicable, are required to send an intimation to the securities holder or claimant confirming the successful dematerialisation and credit of securities to the demat account.
5. Effective Date
The circular will come into force with effect from April 2, 2026. All RTAs, issuer companies, depositories, and investors must align their processes with the revised requirements from this date.
6. Key Takeaway
By eliminating the Letter of Confirmation and enabling direct demat credit, SEBI aims to simplify investor servicing, reduce turnaround time, and enhance operational efficiency, while maintaining necessary checks through attested demat account verification.
Click Here To Read The Full Circular
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