16 October 2007
No. It is not compulsory for unlisted companies to issue shares in de-mat form. Even it may issue shares in physical form. For companies which are listed in the Stock Exchange shall hold its shares in de-mat form.
Therefore it is not compulsory to have de-mat account for purchasing of shars of unlisted domestic company.
01 November 2007
Demat is not compulsory for unlisted companies. At the same time if you have public limited companies share in demat you can get them remat i.e. physical by paying necessary charges to the DP.