Regulatory Alerts2026-01-30
SEBI Circular on Eliminating Letter of Confirmation Requirement for Direct Credit of Securities to Demat Accounts
The Securities and Exchange Board of India (SEBI) has issued a circular amending the Master Circular for Registrars to an Issue and Share Transfer Agents to eliminate the requirement of a Letter of Confirmation for crediting securities in dematerialized mode. This regulatory change mandates that Depositories develop systems enabling RTAs and listed companies to directly credit securities to investors' demat accounts upon due diligence, thereby simplifying processes for requests such as duplicate certificates, transmission, and corporate actions. The amendments, which include updated procedural paragraphs and the deletion of LOC formats, come into force on April 2, 2026, requiring investors to submit a Client Master List attested by a Depository Participant with their service requests.