Issue of securities in dematerialised form by unlisted public companies & filing of Form PAS-6

Issue of securities in dematerialised form by unlisted public companies and filing of Form PAS-6-

In pursuant to Rule 9A of the Companies (Prospectus & Allotment of Securities) Rules, 2014, every unlisted public company (except Nidhi Company, Government Company or Wholly Owned Subsidiary Company) shall follow the below mentioned steps:-

A. FOR EXISTING SECURITIES OF THE COMPANY

(1) Facilitate dematerialisation of all its existing securities by making necessary application to a depository (i.e. NSDL/CDSL) and shall obtain International security Identification Number (ISIN) for each type of security

(2) The company shall inform its existing security holders about demat facility.

(3) Every holder of securities of the Company who would like to transfer such securities after becoming effective of the said Rules, shall get such securities in demat form first.

B. FOR MAKING ISSUE OF SECURITIES OF THE COMPANY

(1) All securities of such offer/issue shall be in Demat form only;

(2) Before making an issue of securities, entire holding of securities of its promoters, directors, key managerial personnel has been demateriarised;

(3) The proposed subscriber(s) of an issue shall make ensure that all their existing holding are held in demat form before such subscription

C. COMPLIANCES

(1) The unlisted public company complies with the regulations or directions or guidelines or circulars, if any, issued by SEBI or Depository from time to time with respect to dematerialisation of shares of unlisted public companies and matters incidental or related thereto.

(2) Every unlisted public company governed by this rule shall submit Form PAS-6 to the Registrar with such fee as provided in Companies (Registration Offices and Fees) Rules, 2014 within sixty days from the conclusion of each half year duly certified by a company secretary in practice or chartered accountant in practice.

D. GRIEVANCES

(1) The grievances, if any, of security holders of unlisted public companies under this rule shall be filed before the Investor Education and protection Fund Authority.

(2) The Investor Education and protection Fund Authority shall initiate any action against a depository or participant or registrar to an issue and share transfer agent after prior consultation with the securities and Exchange Board of India]

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