Sign in
Schedule A Demo

………………………….

Compulsory Demat of shares by Private Companies and conversion of Share Warrants into Shares in Demat form by Public Companies

General Circular No: G.S.R. 802(E).

Circular Date: 27th October, 2023

Relevant Act / Rule: Companies Act, 2013

Effective from: Date of publication in Official Gazette

1. Conversion of Share Warrants issued prior to commencement of Companies Act, 2013 into shares and their demat.

 

Applicability: Public Companies

 

Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023 have been notified to amend the Companies (Prospectus and Allotment of Securities) Rules, 2014 as follows:

  • Details of Share Warrants issued prior to commencement of Companies Act 2013 and not converted into shares to be informed to ROC within 3 months of the commencement of the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023 in Form PAS 7 (New Form)
  • Bearer of such warrants to surrender the same and get the shares demat in the account within a period of six months of the commencement of the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023 and company to place the Notice for the bearers of share warrants in Form PAS-8 on website and publish the same in newspaper (vernacular and English) in State where registered office is situated.

2. Compulsory Demat of shares by Private Companies

 

Applicability: Private Company which is not a Small Company

 

Rule 9B inserted after Rule 9A, viz.:

  • Every private company other than small company to issue shares only in demat form and facilitate demat of all securities. Such Company to comply with the said provisions within 18 months of closure of financial year as on 31.03.2023
  • Entire holding of the promoters/directors/KMP to be dematerialised before making any offer for issue/buy back/bonus/rights issue, after the date when it is required to comply with this rule
  • All transfer of shares by existing holders on or after the date when the company is required to comply with this rule, shall be allowed only after demat
  • Any subscription by way of private placement or bonus shares or rights offer by existing holder of securities on or after the date when the company is required to comply with this rule, shall be allowed only after demat.

Link to circular : https://www.mca.gov.in/bin/dms/getdocument?mds=ZvNqoKdfvPrRcqeoGzGdDg%253D%253D&type=open

Please follow the link to read the General Circular 05/2024 on extension of time for filing of PAS 7 updated on MCA Website: https://1-comply.com/extension-of-time-for-filing-of-pas-7-reg/

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

To stay updated Subscribe to our newsletter today

Explore other Legal updates on the 1-Comply and follow us on LinkedIn to stay updated 

Stay Connected

X-twitter Linkedin Youtube

Subscribe Newsletter

Quick Links

Explore Links

Contact info

  • Head Office:
    9, Dwarikapuri, Jamnalal Bajaj Marg,
    C-Scheme, Jaipur
  • Branches: Anand,Vadodara
  • +91 63778 80064
  • hello@1-comply.com
© 2024,  Compezz Solutions Pvt. Ltd. All Rights Reserved.

Schedule A Demo