Dematerialisation of Shares

Under Rule 9B, private companies that are not small companies must dematerialise their securities, and all holding and subsidiary companies must comply regardless of size. Small companies — broadly those with paid-up capital up to ₹4 crore and turnover up to ₹40 crore — and producer companies are exempt. We confirm whether the rule applies to you.

The deadline for applicable private companies to comply with Rule 9B was 30 June 2025, extended from the earlier date of 30 September 2024. As the deadline has passed, the requirement is now in force, and we help companies that have not yet complied to do so.

A non-compliant company cannot issue new securities, allot shares, conduct buybacks, or process share transfers, and its shareholders cannot transfer physical shares or subscribe to new issues. The company and its officers may also face penalties, so timely compliance is important.

The company appoints a registrar (RTA), obtains an ISIN from a depository such as NSDL or CDSL, and the shareholders open demat accounts and submit their physical certificates for conversion to electronic form. We coordinate the RTA, depository and shareholders throughout.

Form PAS-6 is a half-yearly return that a company covered by the demat rules files with the ROC, reporting its share capital and the number of shares held in physical and dematerialised form. It is filed for each half-year, and we manage these ongoing filings.

No. Dematerialisation only changes the form in which shares are held — from physical certificates to electronic records in a demat account — without affecting ownership or rights. It makes transfers safer and more efficient.

Book a free consultation and share your company details. We confirm applicability, obtain the ISIN, convert the holdings and file PAS-6, on a transparent fee.