ALL UNLISTED PUBLIC COMPANIES HAVE TO ISSUE SHARES IN DEMAT FORM MANDATORILY WITH EFFECT FROM 2nd OCTOBER 2018 PRIVATE LIMITED COMPANIES , SMALL COMPANIES AND OPC COMPANISES CAN STILL ISSUE SHARES IN PHYSICAL FORM.

ALL UNLISTED PUBLIC COMPANIES HAVE TO ISSUE SHARES IN DEMAT FORM MANDATORILY WITH EFFECT FROM 2nd OCTOBER 2018

PRIVATE LIMITED COMPANIES , SMALL COMPANIES AND OPC COMPANISES CAN STILL ISSUE SHARES IN PHYSICAL FORM.

UPC SHALL ISSUE THE SECURITIES ONLY IN DEMAT FORM

MCA issued Companies (PAS) Third Amendment Rules, 2018 which shall come into force w.e.f 2nd October 2018

Key Points of "Rule 9A”

Issue of securities in demat form by unlisted public companies (UPC).-

(a)              Every UPC shall issue the securities only in demat form; and

ALL FRESH ISSUE BY UPC ONLY IN DEMAT FORM

(b)              Every UPC making any offer for issue of any securities or buyback or issue of bonus shares or rights offer shall ensure that before making such offer, entire holding of securities of its promoters, directors, KMP has been dematerialised.

ALL EXISTING SHARES OF UPC SHALL BE CONVERTTED INTO DEMAT FORM

(c)           Every UPC shall facilitate demat of all its existing securities by making necessary application to a depository and shall secure ISIN for each type of security and shall in-form all its existing security holders about such facility.

(d)          Every UPC shall comply with the regulations or directions or guidelines or circulars, if any, issued by the SEBI or Depository from time to time with respect to demat of shares of UPC and matters incidental or related thereto.

(e)          The audit report provided under Regulation 55A of the SEBI (DP) Regulations, 1996 shall be submitted by the UPC on a half-yearly basis to the RoC.

DUTIES OF SHAREHOLDERS

FUTURE TRANSFER OF SHARES OF UPC IN DEMAT

 FORM ONLY

(a)          Every holder of securities of an UPC, who intends to transfer such securities on or after 2nd October, 2018, shall get such securities in demat form before the transfer; or

(b)          who subscribes to any securities of an UPC(whether by way of private placement or bonus shares or rights offer) on or after 2nd October, 2018 shall ensure that all his existing securities are held in demat form before such subscription.

For more information follow the link

http://www.mca.gov.in/Ministry/pdf/CompaniesProspectus3amdRule_10092018.pdf