Dematerilisation

Overview

Dematerialisation means converting physical share certificates into electronic form held in demat accounts. Unlisted public companies have been required to do this since 2018 under Rule 9A, and private companies other than small companies are now required to do so under Rule 9B of the Companies (Prospectus and Allotment of Securities) Rules, 2014. After the applicable date, such companies can issue, buy back or allow transfer of securities only in demat form, and promoters and directors must hold their shares in demat form before any fresh issue.

Our service includes:

• Checking whether Rule 9A or 9B applies to your company
• Appointing a Registrar and Share Transfer Agent
• Executing tripartite agreements with NSDL and CDSL
• Obtaining the ISIN for your securities
• Coordinating credit of existing shares to holders demat accounts

This is a starting fee. Final fee depends on the number of shareholders and classes of securities. Depository and RTA charges are paid directly at actuals.

Who needs it

• Private companies other than small companies under Rule 9B
• Unlisted public companies under Rule 9A
• Companies preparing for fund raising or investor exits
• Companies whose shareholders want shares in demat form

What's included

Included:

• Applicability check under Rule 9A or 9B
• Appointment of Registrar and Share Transfer Agent
• Tripartite agreements with NSDL and CDSL
• ISIN application
• Board resolution and corporate action support
• Guidance to shareholders for demat requests
• Starting fee; final fee depends on number of shareholders and securities

Not included:

• Depository joining and annual custody fees
• RTA annual fees
• Shareholders demat account opening charges
• PAS-6 half yearly reconciliation filing