Securities and Exchange Board of India eliminates Letter of Confirmation and shifts investor service requests to direct demat credit

The Securities and Exchange Board of India (SEBI) has issued a circular to simplify the processing of investor service requests by removing the requirement to issue a Letter of Confirmation (LOC) and enabling securities to be credited directly into the investor’s dematerialisation (demat) account. The changes apply to listed companies, Registrars to an Issue and Share Transfer Agents (RTAs) and depositories, and amend relevant provisions of SEBI’s Master Circular for RTAs. Depositories must develop a process/system allowing RTAs and listed companies, after due diligence, to effect direct credit to the investor’s demat account. Service requests must be submitted with Form ISR-4, a duly filled demat conversion request form, and a latest Client Master List (CML) that is not older than two months and is attested by the Depository Participant (DP). Once objections (if any) are removed, RTAs/issuer companies must process requests and credit securities in demat form within 30 days, with confirmation/intimation to the claimant after demat conversion; lock-in details must be captured where applicable, and physical certificates retained and defaced where relevant (with specific provisions for duplicate certificates, including affidavit-cum-indemnity above INR 10,000 and an undertaking up to INR 10,000). The LOC format is deleted from the Master Circular annexures and Form ISR-4 is modified. The circular takes effect from April 02, 2026. Any LOC issued before April 02, 2026 may still be submitted to the DP for dematerialisation within 120 days from the LOC issuance date.