DEMATERIALISATION FOR PRIVATE COMPANIES
(Pursuant to MCA Notification dated 27thOctober, 2023)
RULE 9B: A Significant Milestone In The Dematerialisation Journey.
Post COVID era, The digitization of financial transactions has revolutionized the way business in conducted in the modern world. In line with this trend, The Ministry of Corporate Affairs (MCA) has introduced Rule 9B under the Companies (Prospectus & Allotment of Securities) Second Amendment Rules, 2023 making the Dematerialisation of securities is made mandatory for Private companies.
The dematerialization of securities was already made mandatory for public companies effective from 2nd October 2018, and now it has been extended to Private limited companies except Small Companies effective from 27th October, 2023 by Ministry of Corporate Affairs vide Notification No. G.S.R. 802(E).
Link: https://www.mca.gov.in/bin/dms/getdocument?mds=ZvNqoKdfvPrRcqeoGzGdDg%253D%253D&type=open
With the implementation of Rule 9B of Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023, Private companies (other than Small Companies) must convert their physical shares into electronic format on or before 30th September, 2024.

For more details please contact us at:
info@aajtax.com
+91-9810285669