Applicable Companies like :
- Section 8 NGO
- WOS or Subsidiary Company
- Holding Company
- Having more than 4 crores of Paid up Shate capital
- Having more than INR 40 Crores of turnover .
Transferring securities:
Shareholders can’t transfer their existing securities to anyone unless both the seller and buyer have demat accounts.
Penalties:
Companies and officers who don’t comply with the rules can face penalties. The initial penalty is Rs. 10,000, and additional penalties of Rs. 1,000 per day can be imposed for continuing defaults.
Please ensure to complete the process of dematerializing your physical shares to avoid non-compliance under rule 9B .
Rule 9B dictates that companies must convert their existing physical shares to electronic form and future issuances must be electronic only.
In case you need any Guidance, please let me know.
Sudheendra Kumar ( Mobile /WhatsApp: 91-9820088394)