CS Himangshu Kedia (Senior Manager - Corporate Law Matters) (995 Points)
05 July 2010Dear All,
The shareholders of X Ltd., an unlisted company have physical shares. Now they want in demat form. The company remains unlisted.
Please advice.
Regards,
Himangshu Kedia
"Any company whether listed or unlisted can opt for dematerialisation of its shares by submitting an application to the Depository and by submitting the necessary documents as provided therein and by entering in to a tripartite agreement with NSDL or CDSL. The Company has to appoint an R & T Agent for this purpose.
NSDL & CSDL both of them permit the unlisted listed companies to go for"
Ashish Gupta
(CS & Legal)
(114 Points)
Replied 05 July 2010
Shareholders of the Company can have their shares converted into Demat form, provided the Company have tripartite agreement with NSDL/CDSL & RTA.
In case the Company intends to enter into tripartite agreement, it needs to fulfill the basic criteria of NSDL/CDSL. i.e. minimum networth of Rs. 1 Cr., fill requisite forms like Master Creation Form, provide supporting documents, paying necessary fees and fulfilling other requirements.
In case Company already have ISIN, shareholders can file Demat Requestion Form (DRF) with their DP and then DP will forward the request of its client to the Registrar of the Company. The Registrar of Company will process the same and get the shares in demat form. The whole procedure will take around 10 days.
Hope this clarifies.
Regards,
Ashish
Nitin Grover
(CS)
(1228 Points)
Replied 05 July 2010
| Originally posted by : Ashish Gupta | ||
 |
Shareholders of the Company can have their shares converted into Demat form, provided the Company have tripartite agreement with NSDL/CDSL & RTA. In case the Company intends to enter into tripartite agreement, it needs to fulfill the basic criteria of NSDL/CDSL. i.e. minimum networth of Rs. 1 Cr., fill requisite forms like Master Creation Form, provide supporting documents, paying necessary fees and fulfilling other requirements. In case Company already have ISIN, shareholders can file Demat Requestion Form (DRF) with their DP and then DP will forward the request of its client to the Registrar of the Company. The Registrar of Company will process the same and get the shares in demat form. The whole procedure will take around 10 days. Hope this clarifies. Regards, Ashish |
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