Dematerialization of Shares
The Ministry of Corporate Affairs, Government of India has issued notification dated September 10, 2018 and accordingly, with effect from October 02, 2018, as per Rule 9A(1) of the Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 (“the Rules”),
‘every unlisted public company shall -
(a) issue the securities only in dematerialised form; and
(b) facilitate dematerialisation of all its existing securities
in accordance with provisions of the Depositories Act, 1996 and regulations made there under.’
Further, as per Rule 9A(3)(a) of the said Rules, ‘Every holder of securities of an unlisted public company, who intends to transfer such securities on or after 2nd October, 2018, shall get such securities dematerialised before the transfer’.
Therefore, HKCL has secured International Security Identification Number (ISIN) from National Securities Depository Limited (NSDL).
As per the above Rules, any shareholder who is desirous of transferring shares of an unlisted public company, which are held in physical form, after October 02, 2018 can do so only after the shares are dematerialised. It be noted that the above Rules do not bar investors from holding shares in the physical form even after October 02, 2018. Further, the aforesaid Rules are not applicable for transfer of title of shares by way of inheritance or succession and interchanging of the order of name of shareholders.
- Details of Registrar and Transfer Agent for Equity shares of HKCL
Link Intime India Pvt. Ltd.
Contact Address of HKCL
The Company Secretary
Haryana Knowledge Corporation Limited (HKCL)
4th Floor, HSIIDC – IT Park, Plot No.1, Sector – 22, Panchkula,
Haryana – 134109, INDIA
FREQUENTLY ASKED QUESTIONS
- A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.
- A depository is an organization where the securities of an investor are held in electronic form, at the request of the investor through the medium of a Depository Participant.
- Central Depository Services (India) Limited (CDSL)
- National Securities Depository Limited (NSDL)
- According to the Ministry of Corporate Affairs (MCA), the major benefits of dematerialisation of securities which will now be available to unlisted Public companies include:
- Elimination of risks associated with physical certificates such as loss, theft, mutilation, fraud etc.
- Improving the corporate governance system by increasing transparency and preventing mal-practices such as benami shareholding, back dated issuance of shares, etc.
- Exemption from payment of stamp duty on transfer.
- Ease in transfer, pledge etc. of securities.
Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with its DP. In order to dematerialise certificates; an investor will have to first open an account with a DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form [DRF], which is available with the DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates.
Before defacing the share certificate, you must ensure that it is available for dematerialisation. You must therefore check with your Depository Participant (DP) whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialisation by the depository. If yes, then you may deface the share certificate. The certificates are defaced by marking "Surrendered for Dematerialisation" on the face of the certificate.
A depository interfaces with the investors through Depository Participants (DPs). If an investor wants to avail the services offered by the depository, the investor has to open an account with a DP. This is similar to opening an account with any branch of a bank in order to utilise the bank's services.
No. The depository has not prescribed any minimum balance. You can have zero balance in your account.
In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates that are to be dematerialised to the DP.