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.