📢 MCA Compliance Alert – Dematerialisation of Shares

🗓 Deadline: 30th June 2025 | 🏛 As per MCA Rule 9B

In a key regulatory move to increase transparency and streamline shareholding structures, the Ministry of Corporate Affairs (MCA) has extended the deadline for dematerialisation of shares of private companies (excluding small companies) to 30th June 2025.

🔍 What is Dematerialisation of Shares?

Dematerialisation refers to the process of converting physical share certificates into electronic form, maintained through depositories like NSDL or CDSL. Once converted, all transactions involving shares (transfer, allotment, etc.) must occur only in demat form.

📘 Applicability of Rule 9B

According to Rule 9B of the Companies (Prospectus and Allotment of Securities) Rules, 2014, every private company (except small companies) must:

  • Facilitate the dematerialisation of its securities.

  • Ensure all new share issues or transfers happen in electronic form.

  • Appoint a Registrar & Share Transfer Agent (RTA) to maintain records.

❗ Note: Small companies, as defined under the Companies Act, are exempt from this rule.

✅ Benefits of Dematerialisation

  • Enhances corporate governance and compliance

  • Simplifies share transfers and record-keeping

  • Reduces the risk of fraud, forgery, or loss of physical certificates

  • Improves investor confidence and credibility

⚠ Consequences of Non-Compliance

Failure to comply with dematerialisation requirements by the deadline may lead to:

  • Inability to issue or transfer shares post 30th June 2025

  • Regulatory action from ROC/MCA

  • Penalties or disqualification in severe cases

🛠 What Should Companies Do Now?

  1. Check your company’s status – are you exempt (small company) or not?

  2. Appoint a SEBI-registered Depository Participant (DP) or RTA.

  3. Open a demat account for the company.

  4. Intimate shareholders and assist them in opening individual demat accounts.

  5. Complete the conversion of physical shares to demat before the deadline.

🤝 Taxla Services Can Help You Comply Smoothly!

At Taxla Services, our team of corporate law experts will:

  • Guide your company through the dematerialisation process

  • Coordinate with RTAs and depositories

  • Prepare necessary board resolutions, forms, and filings

  • Ensure 100% MCA compliance with zero delays

📞 Get in Touch Today

Ensure a seamless transition to demat and avoid last-minute complications!

📱 Call: +91 9600076134 / 7200509886
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com

📍 Office: 19, SBI Colony 3rd Street, Saligramam, Chennai – 600093

#MCARule9B #Dematerialisation #CompanyCompliance #MCAUpdate #PrivateCompanyShares #TaxlaServices #BestAuditorInTamilnadu #ChennaiTaxExperts #CorporateLaw #ROCCompliance #June2025Deadline



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