It is time to dematerialize our equities

With the recent 3rd amendment Rules to Company Act, it is not mandatory for all the unlisted companies to have their equities to be dematerialized for issue and transfer. For this, you have to appoint a Registrar and Transfer Agent.

Price Starts RS @ 7,999 /-

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Dematerialization of Shares Process

Step 1
File the application
Step 2
MCA Analyzes the application
Step 3
Shares dematerialize

Dematerialization of Shares

In the recent amendment rules (3rd amendment rules), it has now become mandatory for all the unlisted public companies to issue and transfer their shares only in dematerialised forms.

If you have incorporated your company as a Public Company, then this compliance is necessary with effect from 2nd October 2018.

The reason for this step is to enhancing the transparency of hte function of the company, enhancing the protection of the investors and the elevating the governance of the corporate sector. To get the gist of it, the goal is to enhance the corporate governance standards through transparency

Courtesy of this amendment, the unlisted public companies are required to facilitate dematerialization of their securities. This has to be done in coordination with the depositors of the company and a share transfer agent. A share transfer agent is someone that the unlisted company has to appoint. It is this agent that is going to provide the public company with the Registrar and share transfer services.

If there are any issues with dematerialization, the IEPF Authority is going to be the one to handle it.

Registrationwala is a team of professionals that entails a team of Company secretaries, Chartered Accountants and other professionals. Our acumen pertaining to company registration and compliance services makes us the perfect choice to be your Registrar & Transfer Agent.

Benefits of Dematerialization

The unlisted public companies will be able to enjoy the following perks according to the MCA:

  1. As the certificated will be dematerialized, the risks that arise due to vulnerability of the physical copies like loss, theft, fraud and mutilation will be eliminated.
  2. Transparency will increase. This further will help with an improved governance system for the corporate industry. AS a result, be-nami shareholdings and other such malpractices will be curbed.
  3. There will be exemption with payment associated with stamp duty.
  4. As the entire equity portfolio will be digitized, the transfer and other matters like pledging of securities can be dealt with easily.

 

Eligibility Criteria for Dematerialization of Shares in India

Following is what constitutes as the eligibility criteria to dematerialize the shares:

  • The share distribution should not be disputed. 
  • The application should be filed on time. 

 

Documents Required for Dematerialization of Shares in India

Following information & documents are required for dematerialization of shares:

  • Certificate of incorporation
  • Director IDs
  • Physical copies of the shares
  • Memorandum of Association

 

Process for Dematerialization of Shares in India

The process of share dematerialization is a simple one. The process is as follows:

  • Apply for share dematerialization at the MCA portal with required documents
  • The shares will be dematerialized once the application is accepted. 

 

Our Assistance to file the Dematerialization of Shares in India

We, at Registrationwala provide end to end solutions for filing Dematerialization of Shares. We provide you to Registrar and Transfer Agents. Our services include:

  • Collection of information and starting the process
  • Drafting the application
  • Reviewing the draft and making changes if necessary
  • Providing you the confirmation receipt.

Registrationwala.com is a leading legal consultancy firm providing the comprehensive services relating to Dematerialization of Shares.

Contact us now if you seek dematerialization of shares

 

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