The Ministry of corporate affairs (MCA) has stated to the organizations (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 (Rules) through the notification on 10-9-2018. The intention before this is to provide the rules and do it mandatory for all the companies who are not listed and listed on the market so as to maintain the securities in the dematerialized form and to ease for those in the electronic form for all those who are already listed securities. According to the records, there are nearly 66,000 companies that are not listed. The major objective is to make the issue and transfer of securities procedure through interchanging the expired process physical certificates of securities with the dematerialization which is in electronic storage of securities process. Dematerialisation of securities has various perks for all divisions. Advantages for the Security Holders:
Advantages to the Organization
Advantages to Brokers
All the rules are imposed and liable from 2/10/2018. Below are the mentioned definitions of the keywords for more understanding with respect to the context of guidelines:
MCA has Provided some Informative Points in this Regard:
(b) Not fewer than 2 years the maintenance of security deposits with depository/registrar/share transfer agent should be. (c) the guidelines which are given by the SEBI along with the depositary with respect to The Dematerialisation of Securities of An Unlisted Public Company needs to be followed.
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