In today’s digital era, holding shares in physical form is not only outdated but also poses risks such as loss, damage, or forgery. Dematerialization (Demat) is the process of converting physical share certificates into electronic form, ensuring enhanced security, easy transfers, and compliance with SEBI & MCA regulations.
Why Dematerialization?
Holding shares in electronic form offers several advantages:
- Eliminates Risks - Prevents loss, theft, or mutilation of physical certificates.
- Easy & Quick Transfers -Seamless online transactions.
- Mandatory for Listed Companies - SEBI mandates that all shares of listed companies must be in demat form.
- Regulatory Compliance - MCA & SEBI require Unlisted Public Companies and other than Small Companies to issue securities only in demat form.
- Transparency & Efficiency - Reduces paperwork, enhances liquidity, and streamlines corporate governance.
Who Needs Dematerialisation?
Wondering if dematerialisation applies to you? Check out the key categories:
- Listed Companies - As per SEBI regulations, shares of all listed companies must be in electronic form for trading.
- Unlisted Public Companies - All unlisted public companies in India are required to dematerialise their shares. [Rule 9A of Companies (Prospectus and Allotment of Securities) Rules,2014]
- Private Limited Companies (Other Than Small Company) - Private limited companies, except those categorised as Small Company, must also comply with dematerialisation regulations. [Rule 9B of Companies (Prospectus and Allotment of Securities) Rules,2014]
- Holding and Subsidiary Companies - Regardless of the financial thresholds set for small companies, any private limited company that is a holding company or a subsidiary of another corporate body must convert physical shares to Demat.
- Section-8 companies
Our Dematerialization Services
- Conversion of Physical Shares to Demat
- Liaising with Depository Participants (DPs) - NSDL, CDSL, & Banks
- Filing of PAS-6 for Reconciliation of Share Capital Audit