In a significant relief for private companies, the Ministry of Corporate Affairs ("MCA") vide its notification dated February 12, 2025, has extended the deadline for mandatory dematerialization (Demat) of securities from September 30, 2024 to June 30, 2025.
As a result, it is now possible to issue or transfer securities of private limited companies in physical form upto June 30, 2025 instead of the earlier deadline of September 30, 2024.
Please note that while shareholders of a private company can still hold their securities in physical form after June 30, 2025, from July 1, 2025 onwards and except for the class of companies specifically exempted by MCA, the securities of a private company can only be issued or transferred in dematerialized form.
It is worth noting that this amendment shall come into force on the date of publication in the Official Gazette.
MCA Notification
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
