INDIA Trends and Developments Contributed by: Anand Lakra, Shivpriya Nanda, Zain Pandit and Ami Shah, JSA Advocates & Solicitors
Compulsory dematerialisation of private companies’ shareholding Keeping with a rapidly evolving digital economy, the Ministry of Corporate Affairs has made it compulsory for private companies to demateri - alise their securities, ie, convert existing physi - cal shares into electronic form, and henceforth, issue new shares only in dematerialised format and allow transfers solely through dematerial - ised accounts. Dematerialised shareholding in Indian companies across the board will prevent fraudulent share transfers and improper share pledges and will also reinforce India’s dedicated efforts towards the ease of doing business and creating a digitally transparent landscape.
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