The mandatory demat requirement is extended until Jun. 30, 2025 which shall not be applicable to producer companies and small companies as on Mar. 31, 2023.
The amendment regulations have not yet been gazetted but will come into force in accordance with reg 1(2) on the date of publication in the official gazette.
On Sep. 20, IND MCA amended companies prospectus rules.
IND MCA published Companies (prospectus and allotment of securities) amendment rules, 2024, to amend Companies (prospectus and allotment of securities) rules, 2014.
Follows IND MCA Oct. 2023 gazetted notification of rule amendments, see #191600.
Document dated Sep. 20, 2024, received from IND MCA Sep. 23, summarized on Sep. 25.
Amendments
The amendment rules insert a proviso in rule 9B(2) of the 2014 principal rules.
The effect is that a private company, which is not a small company as at FY ending on or after Mar. 31, 2023, must dematerialise its securities within 18 months of FY closure.
A producer company must comply with dematerialisation provisions within a period of 5 years from the closure of such financial year.
Effectiveness
The amendment rules come into force on Sep. 20, 2024, the date of their gazettal.
The mandatory demat requirement is extended until Jun. 30, 2025 which shall not be applicable to producer companies and small companies as on Mar. 31, 2023.
The amendment regulations have not yet been gazetted but will come into force in accordance with reg 1(2) on the date of publication in the official gazette.
Regulators
IND MCA
Entity Types
B/D; Corp
Reference
OG 98, Nt G.S.R. 131(E), 2/12/2025; OG 541/2024, Nt, G.S.R. 583 (E), 9/20/2024;
