Ministry of
Corporate Affairs (MCA) has notified vide its notification dated 10th
September, 2018 that all unlisted public company shall issue securities only
in dematerialised
form and facilitate dematerialization of all its existing
securities.
All unlisted public companies shall
secure International Security Identification Number (ISIN) for each type of
securities through Registrar and Transfer Agent (RTA) and shall inform all its
existing security holders about such facility.
Thereafter, security holders shall
dematerialise their existing securities by making necessary application to the
depository participant. In view of the above notification dated 10th
September, 2018 every public unlisted company will have to make compliance and
appoint Registrar & Share Transfer Agent (RTA). It provides numerous direct
and indirect benefits like:
- Elimination
of all risks associated with physical certificates.
- Elimination
of bad deliveries.
- Immediate transfer and registration of
securities.
- Faster
settlement cycle.
- Faster disbursement of non-cash corporate
benefits like rights, bonus, etc.
- Reduction
in brokerage by many brokers for trading in dematerialised securities.
- Reduction
in handling of huge volumes of paper.
- Periodic status reports to investors on their
holdings and transactions, leading to better controls.
- Elimination
of problems related to change of address of investor.
- Elimination
of problems related to transmission of demat shares.
- Elimination
of problems related to selling securities on behalf of a minor.
- Ease
in portfolio monitoring since statement of account gives a consolidated
position of investments in all instruments.
An Issuer may offer demat
facility to its shareholders by admitting the securities in NSDL.
Issuer should obtain electronic connectivity with the existing Registrar &
Transfer Agent (R&T Agent). After submitting the requisite set of documents
to NSDL, NSDL will send blank copies of Tripartite Agreement (3 copies with
franking of Rs 200/- each) to the R&T Agent. The 3 copies of agreement
should be sent to NSDL after signing by R&T Agent & Issuer. ISIN
(International Securities Identification Number) generated by NSDL for the
security will be conveyed to the Issuer.
REPORTING COMPLIANCES
It is mandatory for all Public Unlisted
Companies (PUC) to apply for ISIN no. to comply with provisions of Rule 9A. It
is responsibility of public Company to facilitate dematerialization to
shareholders in terms of provisions of Indian Companies Act.
First half year for PUC shall be closed
on 31stMarch, 2019, therefore every PUC mandatorily required to file
Reconciliation of Share Capital Audit Report with Roc on or before 30thApril,
2019 to the Registrar under whose jurisdiction the registered office of the
company is situated.
Mob: +919910012764, 9810062387
Mail:corporate@globaljurix.com
