Demat Of Shares
What is Demat of Physical Shares?
When the shareholder of a company gets physical share certificates converted into electronic balances, the process is termed as Dematerialization or in simpler terms Demat.
Often it has been noted the investors encourage the share-holder to get the physical certificates converted into Demat shares. In some cases, it is mandatory as well for companies seeking to raise equity funds
Legal Aspects of Demat of Shares
- Governing Law: Section 29 read with Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014
- Effective Date: Rule 9A, 2nd October, 2018
- Applicability: Unlisted Public Company-Mandatory Private Limited Company-Optional
Benefits of Demat of Shares
- Safety and security – Elimination of loss or theft of shares
- Faster and smoother settlements
- Reduction in errors
- Easy transmission
- Better liquidity and monetization
- Yields and returns v/s physical assets – E.g. gold
- Elimination of odd-lot problems
- One-stop storage for all assets
- Simplified accounting and management
- Central point for updating information
Documentation Required for ISIN//DEMAT Registration
- PAN Card Copy ,COI, MOA, AOA
- Latest balance sheet & audit report of the Company (Not Required for New Company)
- TAN & GST Registration of the Company. (If Applicable)
- PAN and Aadhaar Card Number of all Directors & Authorised Signatory.
- Email ID, Contact Number and Name of Authorised Signatory.
- List of Shareholding as on Current Date (Not Required for New Company)
- Networth Certificate & Board Resolution
Process of Dematerialization of Shares
- Hold a Board meeting to consider and approve the proposal for obtaining DEMAT connectivity for securities with the depositories.
- Appoint a Registrar and Transfer Agent (RTA).
- After the appointment of RTA, the company shall file an application along with relevant documents with the depository for obtaining DEMAT connectivity.
- The company, depository, and RTA shall enter into a Tripartite agreement in respect of securities that are to be declared as eligible to be held in dematerialized form.
- After verification of the application and other documents, the depository will provide the DEMAT connectivity to the company and allocate ISIN to the securities of the company.
Our Demat Services
- SBS Global has tied up with Registered Transfer Agents(RTA’s) for the Digitalization of Share Certificates for its Clients.
- This is a SEBI Approved process and the services provided through SEBI Registered Category-I RTA.
- Through this process, the companies can convert their existing physical form of Shares to Digital Form (Demat Shares).
- The Demat Shares are easy to hold, a low risk of delivery and transfer, this is in line with the digitalization of the various processes.
Certifications & Credentials
Quality Management System (QMS)
Certified by Indian and UK bodies.
Information Security Management System (ISMS)
Certified by Indian and UK bodies
If you wish to convert your existing physical form of shares and enable the digitalization of your Shareholding, Secretarial Team at SBS Global can guide and facilitate this transformation.
Other Company Secretarial Services
Ensures efficient administration by complying with statutory and regulatory requirements as per the provisions of the Companies Act, regulations enacted there under and laws specific to the business.
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