CHECKLIST FOR DEMATERIALISATION OF SECURITIES

CHECKLIST OF DEMATRIALISATION OF SHARES

As per Section 29 read with rule 9A of The Companies (Prospectus and Allotment of Securities) Rules, 2014,  which was duly inserted by Companies Amendment  Act 2019. Every unlisted Public company is required to convert  its Securities into electronic mode from Physical mode.

Dematerialisation

  Difference between Demat and Remat

Dematerialisation:  Dematerialization (DEMAT) is the move from physical certificates to electronic bookkeeping. Actual stock certificates are then removed and retired from circulation in exchange for electronic recording.

Rematrialisation:  Rematerialisation is the process by which a client can get his electronic holdings converted into physical certificates. The client has to submit the rematerialisation request to the DP with whom he has an account

Process of Demat

1.    First Choose depository whether CDSL or NSDL

2.   Pass Board resolution for approving the proposal of Demat and appointment of DP and RTA

3. Make Appointment of Depositary Participants and RTA (Registrar and Share Transfer Agent)

4.    Obtain Declaration from Issuer and RTA

5.   Fill the form Letter of Intent cum Master Creation Form for admission of Unlisted Company

6.    Obtain a Net-worth Certificate from PCS

7. Issuer need to make security details which shall be Dematerialise

8. Obtain Tripartite Agreement executed between (Issue, DP and Depository)

 9.Undertakingrom Public/Private company for admission of share in Depository

 Find all related Formats for Demat at https://moderneducationofindia.blogspot.com/2020/04/formats-fordematerialisation-of.html

Following documents are required for above purpose

    A.      Master Creation Form duly filled, signed and stamped on all the pages(In prescribed Format).

  B.   Certified copy of latest annual report completes in all respects (if printed copies are not available-the same is to be photo copied back-to back of the paper).

  C.    Certified copy of Memorandum and Articles of Association (duly authenticated where changes have been carried out).

 D. Certified copy of Incorporation should contain these all of the R.O.C.and signature of the Registrar

 E.      Certified copy of Board Resolution for admission of equity shares with CDSL.

F.      Undertaking-cum-Indemnity

G.     In case there is an increase in the paid-up capital of the company after the date

      of the latest balance sheet, kindly arrange to forward in order duly certified

      related documents

H.  Tri-party Agreement duly printed on Rs.600/-stamp paper-, stamped (Co. round Stamp) & signed on all the pages ,should be in triplicate (i.e.-1 original+2 photocopies,duly stamped & signed on all the pages in original +original(on all 3 copies))--Formats attached-No dates to be mentioned.

I.        Equity details as per the format attached.

J.        Declaration as per the format enclosed for freezing of ISIN. List of Authorised

       signatories along with specimen signatures as per Board Resolution.

K.      CTC of TAN & GST Certificate

Note: Process of Dematerialisation for NSDL and CDSL is almost same, however there are some minor changes in their process

Formats of Above documents are here: https://moderneducationofindia.blogspot.com/2020/04/formats-fordematerialisation-of.html

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Posted by LAWgicAL ARUSH