Every holder of securities in a private firm who wishes to transfer such securities on or after September 30, 2024, must have them dematerialized before the transfer.
India has taken another significant step towards improving the integrity of its financial markets, as the Corporate Affairs Ministry (MCA) now requires private corporations to dematerialize their assets.
All private companies, except small and government companies, can now only issue new securities in dematerialized form, according to the MCA’s most recent revision to a Rule governing securities issuance.
Private enterprises must support the dematerialisation of existing securities, and the deadline for complying with the most recent directives is September 30, 2024.
