I want to know the demat status of our sec8 NPO and what are activities to be done towards it.
A section 8 company limited by shares needs to issue shares in demat mode and get existing shares dematerialised. As per Rule 9B of Companies (Prospectus and Allotment of Securities) Rules 2014 as amended in 2023, every private company limited by shares excluding small company needs to issue, hold and transfer shares in dematerialized mode only. The deadlines was 30.6.2025. Please note that Section 8 company is excluded from definition of small company and therefore covered under Rule 9B without exception.
The company has to obtain an International Securities Identification No (ISIN) through NSDL/CDSL and the holders of shares will open a demat account with a depository participant (DP) to hold and manage shares in demat mode. A SEBI registered Registrar & Transfer Agent (RTA) will facilitate ISIN and connectivity with NSDL/CDSL. Form PAS-6 has to be filed half yearly with ROC reconciling physical and dematerialized share capital.
CS Sharad Bhargava
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