Market regulator SEBI has made an important change that will make investing much easier for millions of investors.
The process of depositing securities into demat accounts has been simplified, cutting down long delays and unnecessary paperwork.
The biggest relief? Investors will no longer need a transaction confirmation letter to complete the process.
This move is expected to reduce the waiting period for transferring securities from 150 days to just 30 days, making the system faster and safer.
What Was the Earlier Process?
Until now, investors had to follow a lengthy procedure.
When securities were issued by listed companies, registrars and share transfer agents (RTAs) would send a Letter of Confirmation (LoC) to investors.
Investors then had to submit this letter to their depository participant to get the securities credited to their demat account.
This entire process usually took around 150 days, increasing the risk of delays, loss of documents, or misuse.
What Has SEBI Changed Now?
SEBI has removed the need for issuing Letters of Confirmation altogether.
Under the new system, RTAs and listed companies will directly credit securities into investors’ demat accounts after completing the required checks.
This change will significantly reduce paperwork, speed up the process, and lower the risk associated with physical or digital confirmation letters.
When Will the New Rule Apply?
The new SEBI rule will come into effect from April 2, 2026.
Any Letter of Confirmation issued before this date will remain valid and can be used within the prescribed timeline.
SEBI said this initiative is aimed at simplifying market participation, improving operational efficiency, and strengthening investor protection, making the investing experience smoother and more secure for everyone.
