Is dematerialisation of shares mandatory for Section 8 companies? If it is required, what are the associated costs or compliance implications?
Yes, dematerialization of shares for section 8 company limited by shares is mandatory since September 2024. You need to engage a depository either NSDL or CDSL and a SEBI approved Registrar and Transfer Agent (RTA). The RTA will help you with depository and ISIN allotment. Reporting to ROC has also to be done. The RTA will be able to provide better details on costs but for an unlisted company with small share capital, the costs will not be significant.
Hope it helps.
CS Sharad Bhargava