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Demat of unlisted public company shares , a big dilemma

Law Aspire (CS) (755 Points)

09 October 2018

Dear All

If the company is a State or Central Government company in which Directors are nominee of Government i.e. they are either IAS, IPS, MP, MLA then do we also have to open the demat account of these persons.

Is there is any exemption provided to the Government Companies for DEmaterialisation of Shares.

Pleae take this matter as urgent

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3 Replies

Sriram Santhanam (156 Points)
Replied 10 October 2018

As of now no exemption is provided by MCA. However , companies which issues further shares and if shares needs to be transferred then alone Issue of Prospects Rules Mandates a company to issue or transfer shares in dematerialized form. As long as no such issues or transfer does not happen, shares can be continued to held in physical form.

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Law Aspire (CS) (755 Points)
Replied 11 October 2018

Originally posted by : Sriram Santhanam
	As of now no exemption is provided by MCA. However , companies which issues further shares and if shares needs to be transferred then alone Issue of Prospects Rules Mandates a company to issue or transfer shares in dematerialized form. As long as no such issues or transfer does not happen, shares can be continued to held in physical form.