REGARDING DEMAT OF SHARES
This query is : Resolved
06 December 2025
Dear Sirs/ Madams
Company A ceased to be a small company during FY 2023–24 and, accordingly, applied for and obtained an ISIN. It has not yet completed the dematerialisation of its shares. However, due to the amended definition of a small company, Company A now falls under the revised criteria and again qualifies as a small company.
In this situation, is Company A still required to proceed with the dematerialisation of its shares, or can it discontinue the process since the revised definition no longer makes dematerialisation applicable to it?
Kindly resolve
Thanks in Advance
Company A ceased to be a small company during FY 2023–24 and, accordingly, applied for and obtained an ISIN. It has not yet completed the dematerialisation of its shares. However, due to the amended definition of a small company, Company A now falls under the revised criteria and again qualifies as a small company.
In this situation, is Company A still required to proceed with the dematerialisation of its shares, or can it discontinue the process since the revised definition no longer makes dematerialisation applicable to it?
Kindly resolve
Thanks in Advance
06 December 2025
No, the company cannot stop or reverse the dematerialisation process.
Since Company A ceased to be a small company in FY 2023–24 and obtained an ISIN, Rule 9B compliance has already been triggered.
Therefore, it must complete dematerialisation, even if it now again qualifies as a small company due to the amended definition.
Since Company A ceased to be a small company in FY 2023–24 and obtained an ISIN, Rule 9B compliance has already been triggered.
Therefore, it must complete dematerialisation, even if it now again qualifies as a small company due to the amended definition.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Additional trade name
- Equity Share Sale and Purchase
- Number of years as per AS amortisation of Goodwill
- Whether output tax is taken credit by purchaser
- Wrong CMPo8 file
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
