SEBI had earlier mandated issuance of a Letter of Confirmation (LOC) for credit of securities arising from investor service requests such as duplicate certificates, transmission and related matters. The process involved physical handling and submission of LOCs, leading to delays and operational risks. To simplify procedures and improve ease of doing investment and business, SEBI has reviewed this requirement. Accordingly, SEBI has dispensed with the requirement of issuance of LOC and enabled direct credit of securities to investors’ demat accounts. Reference can also be made to the amendment made in this regard in Regulation 39(2) of SEBI(LODR) 2015 on 22 January 2026

1. Requirement of issuance of Letter of Confirmation (LOC) for dematerialisation stands removed.
2. RTAs / Issuer Companies shall directly credit securities to the investor’s demat account after due verification.
3. Investor service requests must be accompanied by a latest Client Master List (CML), not older than two months, duly attested by the Depository Participant.
4. RTAs / Issuer Companies shall complete processing and credit securities in demat form within 30 days of receipt of complete request.
5. Format of LOC prescribed under Annexure-7 stands deleted and related procedures under Annexure-15 and Annexure-20 stand aligned to direct demat credit.
6. LOCs issued prior to April 02, 2026 may be used for dematerialisation within 120 days from the date of issuance.
7. This Circular shall come into force with effect from April 02, 2026.