/ Company Law Compliances

MCA : June timeline for Pvt Co to Dematerialize Securities

Bank Audit Check List & Procedure.

MCA has extended the deadline for Pvt Ltd co to dematerialize their securities to June 30, 2025

This is to inform you that the Ministry of Corporate Affairs has extended the deadline for private companies to dematerialize their securities to June 30, 2025, through an amendment to Rule 9B of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

With the latest amendment to Rule 9B of the Companies (Prospectus and Allotment of Securities) Rules, 2014, private companies now have until June 30, 2025, to dematerialize their securities. This extension gives private companies more time to comply with the dematerialization requirements.

Additionally, as you correctly pointed out, the Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018, mandated unlisted public companies to ensure dematerialization of securities before issuing new securities, buybacks, bonus shares, or rights issues.

Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018

As you must be knowing, the Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 notified by the Ministry of Corporate Affairs on September 10, 2018 state that:

  • Every unlisted public company making any offer for the issue of any securities or buyback of securities or issue of bonus shares or rights offer shall ensure that before making such an offer, the entire holding of securities of its promoters, directors, and key managerial personnel has been dematerialized in accordance with the provisions of the Depositories Act 1996 and regulations made thereunder.
  • Also, with the amendment in section 29 of the Companies Act, 2013 Date. 31.07.2019, the word “PUBLIC” has been omitted. Hence, Private Limited limited companies may be required to get ISIN as well. The 2019 amendment to Section 29 of the Companies Act, 2013, removed the word “PUBLIC,” which suggests that private companies may also be required to obtain an ISIN (International Securities Identification Number) and comply with dematerialization regulations.

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