ROC IMPOSED A FINE OF RS 50000 FOR TRANSFERING SHARES WITHOUT DEMAT FORM BY A PRIVATE LTD COMPANY

 ROC IMPOSED A FINE OF RS 50000 FOR TRANSFERING SHARES WITHOUT DEMAT FORM BY A PRIVATE LTD COMPANY

ROC BENGALURU VS FYLE TECHNOLGIES PRIVATE LTD

·     Under Rule 9B(4)(a), shareholders of a covered private company intending to transfer their securities after 30 June 2025 are required to dematerialize them before the transfer.

·     The company obtained its ISIN on 8 July 2025, but just 16 days later, on 24 July 2025, its Board approved a share transfer even though the transferor shareholders had not dematerialized their shares.

·     The ROC imposed ₹10,000 each on the company and four officers in default.

·     ROC directed the company to dematerialize the shares and submit proof through Form GNL-1 within 30 days.

·     For private companies covered by Rule 9B, dematerialization needs to be checked before approving a share transfer.