Understanding Demat of Shares under the Companies Act 2013



Quick Summary
The Companies Act 2013 has modernised shareholding by introducing provisions for the dematerialisation of shares, commonly known as demat. This process converts physical share certificates into electronic records, held in a Demat Account, offering greater transparency and efficiency. Key provisions include mandatory dematerialisation for certain securities and regulation of depositories, streamlining share transfers and reducing risks associated with physical certificates.

In today's digital age, the process of dematerialization of shares has become a common practice among investors. With the advancement of technology, the Companies Act 2013 has introduced various provisions regarding the demat of shares to ensure transparency and efficiency in the capital market. In
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