Key Takeaway: If you lose original physical share certificates, the company will never issue new paper certificates. Under SEBI regulations, you will receive a digital or physical Letter of Confirmation (LOC) via Form ISR-4. You must deposit this LOC with your Demat broker within 120 days, or your shares will be locked into the company's Suspense Escrow account!
The 2022 SEBI Circular: End of Paper Duplicate Certificates
Historically, when an investor lost a physical share certificate, companies issued a replacement paper duplicate certificate. However, this caused widespread counterfeit fraud, loss in postal transit, and signature manipulation.
To eliminate this, SEBI issued circular SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8, stipulating that for all service requests regarding duplicate shares, renewal/exchange of certificates, endorsement, sub-division, or consolidation, companies shall strictly issue securities in dematerialized form only through a Letter of Confirmation (LOC).
Documents Required to Obtain Form ISR-4 Letter of Confirmation
To receive your Letter of Confirmation from the RTA, you must execute the following statutory dossier:
- Form ISR-4: Request for issue of Duplicate Certificate and other service requests.
- Form ISR-1: Registering PAN, KYC details, and nomination.
- Form ISR-2: Banker attestation of signature with original bank manager seal.
- Affidavit (Form A): Notarized on non-judicial stamp paper confirming loss of shares.
- Indemnity Bond (Form B): Non-judicial stamp paper with two independent sureties.
- Police Complaint / FIR / General Diary: Stating distinct certificate numbers and folio details.
- Public Newspaper Notice: Required in national English and regional newspapers if share valuation exceeds ₹5,00,000.
The 120-Day Rule: Don't Let Your Shares Move to Suspense Escrow!
Critical Alert for Investors
Once the RTA issues the Letter of Confirmation, you have exactly 120 calendar days to submit it along with a Demat Request Form (DRF) to your Depository Participant (Zerodha, ICICI Direct, HDFC Sky, Groww, AngelOne, etc.).
If you fail to submit within 120 days, the company is legally mandated to credit those shares into its corporate Suspense Escrow Demat Account. Reclaiming shares from Suspense Escrow requires fresh RTA clearances, affidavits, and months of administrative delays.
Frequently Asked Questions
What is a Letter of Confirmation (LOC) issued by SEBI / RTAs?
Under SEBI circulars, listed companies no longer issue physical paper certificates for duplicate shares. Instead, they issue an official Letter of Confirmation (LOC) certifying shareholder entitlement.
What is the validity period of a Letter of Confirmation?
An LOC is valid for exactly 120 days from the date of issuance. Within this window, the shareholder must submit the LOC with a Demat Request Form (DRF) to their Depository Participant (DP).
What happens if I fail to demat the Letter of Confirmation within 120 days?
If not converted within 120 days, the company is legally required to move your shares to a dedicated 'Suspense Escrow Demat Account', making future recovery substantially more complex.
Lost Share Certificates? Get Your LOC Without Rejection
ClaimMyFunds drafts complete Form ISR-4 applications, newspaper notices, affidavits, and coordinates with RTAs and DPs nationwide. Pay zero advance fees until your shares are safe in your Demat account.
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