Gone are the days of Physical Securities! ( By CS Mallika Tayal) Dematerialization of Securities: (Section 29 of the Companies Act, 2013) In order to enhance transparency in ownership at C orporates, curb benami transactions and to make the framework free from loopholes Ministry is coming up with many drives these days through different initiatives, may it be striking off of companies under section 248(1) and (2), disqualification of directors under section 164(2)(a) or the latest KYC updates of Directors. What is the Concept of Dematerialization? Dematerialization, or demat, in a very simple language involves conversion of the physical stocks into electronic form. Scope of Dematerialization: Till now, Dematerialization of Shares was a mandatory requirement for a listed entity to have its entire promoter shareholding and non-promoter shareholding in demat form but after...
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