SEBI Scraps Letter of Confirmation, Cuts Securities Credit Time from 150 Days to 30
Moneylife Digital Team 02 February 2026
In a major move to improve ease of investment and reduce procedural delays, the market regulator, the Securities and Exchange Board of India (SEBI), has done away with the long-standing requirement to issue a letter of confirmation (LOC) for the credit of securities into investors’ dematerialisation (demat) accounts.
 
The reform is aimed at simplifying investor service requests and significantly shortening timelines that have long been a source of delay and frustration for investors.
 
At present, listed companies and registrars issue shares, and share transfer agents (RTAs) issue LOCs to investors for various service requests, such as the issuance of duplicate share certificates, transmission, transposition, claims from unclaimed suspense accounts and corporate actions.
 
Investors are then required to submit this LOC to their depository participant (DP) to have the securities credited to their demat accounts, a process that typically takes around 150 days.
 
Under the revised framework announced by SEBI, this intermediate step has been eliminated. RTAs and listed companies will now directly credit securities to the investor’s demat account upon completion of the required due diligence. The new system will come into effect from 2 April 2026, though LOCs issued before this date will remain valid within the prescribed timelines.
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