Advertisement
Advertisement
Skip to content
Follow Us on
Advertisement
TOP STORIES
Company Law

Unlisted public companies exempt from dematerialization of Securities

Advertisement

Earlier Provision:

MCA vide it’s notification dated September 10, 2018 inserted Rule 9A in Companies (Prospectus and Allotment of Securities) Rules, 2014, making it mandatory for all the unlisted public companies to dematerlize it’s securities w.e.f. October 2, 2018 without any exemption to Nidhi Company or Government Company (unlisted public company).

MCA on 22nd January, 2019 has published Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019. By these amended rules “in rule 9A, after sub-rule (10)” follow new rules inserted

This rule shall not apply to an unlisted public company which is:—

(a) A Nidhi;

(b) A Government company or

(c) A wholly owned subsidiary.”

I. Whether Nidhi Company as a public Company required getting its securities dematerlize?

W.e.f. 22nd January, 2019 MCA has given exemption to Nidhi Companies from the provisions of dematerialization. Therefore, one can opine that Nidhi Company don’t required to get its share in Demat.

Also ReadImpact of “Demetralization of Securities” of Public Limited Company

Advertisement

Author Info

CS Divesh Goyal
Qualification: CS
Company: Goyal Divesh & Associates
Location: Delhi, Delhi
Articles Published: 748

Join TaxGuru's Network for the latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

8 Comments
  1. Dear Sir

    Thank you for the sharing knowledge
    If we appoint Whole Time Director for 5 year and remuneration will change time to time with approval of Board of Directors in Board Meeting.
    My question is whether we required shareholder approval for change/alter in remuneration.

  2. Thank Tou Sir For this Article and format which is provided by you.
    I have a question – If a director of a company wants to purchase shares of that company, can he do so? and if yes please mail me the procedure of it.

  3. I have been incorprate LLP on 3rd Jan 2018.
    Please guide I have to file income tax return for 3 month till 31-03-2018 or can we file 15 month combined with next year ?

  4. If your company falls under the category of “Exempted Companies” then right issues can be done in physical mode.

    Query:

    If a Company has already obtained ISIN and falls under the exempted category then:

    1. Does it needs to submit half yearly report ?
    2. Can i transfer physical shares ?

Leave a Reply

Your email address will not be published. Required fields are marked *