Demat of shares

Dear All
 
Kindly provide your valuable inputs on the following query:


Is it compulsory for our company (Pvt. co.) (unlisted one) to get its shares in demat form.


the query is regarding dematerialisation of securities of a pvt. company in which one of the shareholder is Portfolio Managers who is investing in our company.According to them, they need to hold securities in demat form. Kindly clarify on urgent basis.


An copy is attached for your reference.Plz help

 

Anchal talwar


Attached File : 300150 942880 amendment regulation feb 2012.pdf downloaded: 418 times
Replies (9)

Dear Anchal,

it is not compulsory to your company to hold shares in demat.

it is mandatory for those company who shares getting listed on bse or nse.

 

regards,

 

Legelly it is not mandatory for a private company to issue shares in demat mode for sure. However if prospective investor needs to hold securities in demat form then you have to take Demat connectivity.

 

Taking demat connectivity in a private company is not a big task:

 

For Demat info kindly refer the link below:

 

JOINING NSDL AS AN ISSUER

Dematerialisation is not mandatory for pvt ltd company but it is mandatory for public ltd company whether listed or not (i suppose).

 

Originally posted by : CS Aditya Agrawal

it is mandatory for public ltd company whether listed or not (i suppose).

 NO


Come on Adi...You are a CS man....

Dear Anchal,

SEBI PMS Regulations does not make it mandatory for the Portfolio Managers to hold securities of their clients in Demat form. It only mandates that the securities of clients shall be held under the client's name separately. For the ease of operation the Portfolio Manager would like to have the securities in demat form as the transfer of shares in physical form for a large number of their clients would be quite cumbersome. 

Dear Ankur Ji

i regret if my knowledge have hurted you being a CS, kindly update my knowledge as i m in impression that if a unlistd public company is alloting its shares in physical form it have to have ISIN with any of depositories so that on wish of allottee DP could be able to convert his shares in Demat form.

aditya.advocate @ gmail.com

Regards

Aditya

 

I am Sorry bhai…couldn’t control…

 

A public and private unlisted company can allot any number of times by issuing share certificate. However generating ISIN and taking demat connectivity is optional and always open for such public and private unlisted company.

Thanks!!!

no need to be sorry bhai,, i have joined this plateform to share knowledge. and you have full right to write that.

Thank you sir for your Valuable inputs

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