MCA File no: F. No.1/21/2013-CL-V dated 12 Feb, 2025
Relevant Act/Rules: Companies Act 2013, Companies(Prospectus and Allotment of Securities) Rules, 2014
Relevant Section/ Rule: Rule 9B
Earlier vide Circular no. G.S.R. 802(E) dated 27th October, 2023, Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023 had been notified to amend the Companies (Prospectus and Allotment of Securities) Rules, 2014 so as to include Rule 9B after Rule 9A which provided that 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, i.e. by September 30, 2024 (Article on the same can be referred to on the link https://1-comply.com/2024/01/29/compulsory-demat-of-shares-and-conversion-of-share-warrants-into-shares-in-demat-form/)
Now, Vide Companies (Prospectus and Allotment of Securities) Amendment Rules, 2025, a new proviso has been inserted after existing proviso to Rule 9B(2) on February 12, 2025 stating that a Private Company other than a Producer Company, which is not a small company as on March 31, 2023 may issue the securities in demat form and facilitate demat of all its securities by 30th June, 2025.
This amendment will be effective from the date of publication in the Official Gazette.
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