Special Contingency Cover for IEPF and SEBI-Driven Risks
SEBI & MCA Mandated Coverage
Recent regulatory updates have made Special Contingency Insurance mandatory for all listed companies, to safeguard against risks arising from securities issuance and IEPF-related claims.
Regulatory Background
- SEBI Circular (25 May 2022) mandates listed entities to obtain a Special Contingency Policy covering risks related to the issuance of duplicate share certificates/securities.
- MCA Notification (9 September 2024) amending the IEPF Rules, requires listed companies to secure insurance protection against risks arising from IEPF claims, particularly in relation to Verification Reports (Schedule IV).
What Coverage Is Required?
Listed companies must ensure insurance protection against:
- Issuance of duplicate share certificates or securities
- Claims arising from IEPF transfers and refunds
- Risks linked to Verification Reports and related disputes
Customised coverage aligned with IEPF and SEBI circular requirements
Flexible policy wording tailored to unique corporate exposures
Protection against defined regulatory, legal and financial contingencies
Expert advisory support in structuring and placing the cover
Frequently Asked Questions
What is a Special Contingency Policy (SCP)?
It’s a customised policy addressing specific, high-impact risks not covered under standard insurance.
Why is SCP relevant for IEPF and SEBI requirements?
It helps manage exposures arising from investor protection, regulatory mandates and special obligations.
Can SCP be tailored to our company’s unique risks?
Yes, coverage is typically structured after detailed risk assessment and consultation.
Does SCP replace existing liability policies?
No, it does not replace.
Who should consider an SCP related to IEPF/SEBI?
Only Listed companies.
How is the premium for SCP determined?
Based on exposure type, limits, claims history and negotiated policy wording.
