section 68B

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richa (Querist)
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04 July 2009 can u please clarify the conclusions of section 68B of companies act 1956, regarding issue of securities in Dmat Form

Ankur Garg

Ankur Garg (Expert)
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06 July 2009 Hi,

A company can issue shares in Demat & Physical form i.e. by issuing share certificates to shareholders.

As per Section 68B if a company is going for IPO of a value of Rs. 10 crore or more then, it has to issue the same in demat form and there is no option available to the company to issue shares in Physical form i.e. by issuing share certificates to its shareholders.

Regards

richa

richa (Querist)
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10 July 2009 thank you for replying.
does this mean that for future issues, there is an option for physical form?
and after the issue, can anyone materialize their shares?

CS SIDDHARTHA BANIK

CS SIDDHARTHA BANIK (Expert)
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11 July 2009 Hi,

S.68B does not deal with rematerialization of shares.

After initial IPO, any rematerilization of demat shares should be as per the Listing Agreement & Depositories Act,1996.

Thanks,