DEMATERIALISATION OF SHARES
Income Tax dept seeks details from NRIs, offshore firms on unlisted share deals, flags valuation and fund source concerns
India’s tax department has asked NRIs and offshore entities to justify investments in unlisted shares, seeking details on fund sources and valuations. Using demat data, authorities are probing deals from 2019–23 for potential tax evasion, round-tripping and money laundering, with non-compliance likely to trigger scrutiny, tax demands and litigation.
India must channel $10 trillion in household gold into financial system: Former minister Choudhary
India's vast household gold reserves could boost economic growth. Experts suggest shifting consumers to financial instruments like Electronic Gold Receipts. This move aims to reduce reliance on gold imports and ease pressure on the current account deficit. The National Stock Exchange is ready with platforms and technology to facilitate this transition.
Getting started in the stock market: Account setup and cost evaluation
Beginners can navigate the stock market by first opening a demat account and understanding associated costs. Utilizing tools like a brokerage calculator is crucial for evaluating fees, comparing brokers, and ensuring long-term profitability. Smart investing combines cost-effectiveness, discipline, and a long-term perspective for sustainable wealth creation.
What is a demat account? A beginner’s guide to stock investing
A demat account is a digital repository for holding equity shares and financial securities, eliminating the need for physical certificates. It works in conjunction with trading and bank accounts, enabling efficient and secure transactions. Essential for beginners, it offers paperless investing, centralized portfolio management, and reduced risk.
ETMarkets Smart Talk | The future is omnichannel, not RM-only or tech-only: Srikanth Subramanian on wealth management’s next phase
India's wealth management is transforming with younger HNIs, tech adoption, and evolving expectations. Ionic Wealth's Srikanth Subramanian emphasizes integrating human advice and technology, balancing IQ, EQ, and DQ. This approach has propelled the firm past $1 billion in AUM, showcasing a new paradigm for the industry.
Sebi removes letter of confirmation requirement, allows direct credit of securities to demat accounts
The Securities and Exchange Board of India, SEBI, is simplifying investment processes. A Letter of Confirmation for credit of securities will no longer be required. Instead, securities will be directly credited to investors' demat accounts. This change aims to speed up the process significantly. The new system will be effective from April 2, 2026.
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IEPFA plans faster payouts for low-value unclaimed shares, dividends
Under the existing system, the authority then oversees claim settlements and verifications, with the relevant companies playing a key part in the stipulated processes. The proposed move aims to do away with further verification by the IEPFA in cases of low-value claims to ensure faster settlement, as per the draft rules firmed up by the authority.
Sebi mulls measures to ease dematerialise & transfer physical shares
Markets regulator Sebi on Friday proposed measures to make it easier for investors to dematerialise physical shares and transfer them, especially those lodged before April 1, 2019.
Sebi proposes demat for pre-public offer shareholders
Sebi will amend rules to include these category of shareholders, so as to bring more shareholders under the dematerialisation mode and reduce the volume of physical shares from the listing space.
Sebi moots demat requirement for directors, KMPs ahead of IPO
SEBI has proposed that certain shareholders, including directors, key managerial personnel, and current employees, must hold their shares in dematerialized form before an IPO document is filed. This move aims to eliminate risks associated with physical share certificates, such as loss and forgery.
Demat deadline eased for large unlisted companies
In October 2023, the ministry had made it mandatory for these companies to issue securities in only dematerialised forms by September 2024. The rule led to a pile-up of a large number of applications for dematerialisation with depositories NSDL and CDSL, raising their workload, according to experts. The extension was required, they said, adding that more than 1.7 million private companies were registered with the corporate affairs ministry as of December 2024.
Sebi proposes mandatory dematerialisation of securities in case of stock split, consolidation
If an investor lacks a demat account, the issuer company will be obligated to open a separate demat account with a suitable ownership ledger (suspense escrow account) to manage such securities. This move aims to amend the existing SEBI (LODR) Regulations, 2015, according to the market regulator's proposal.
Demat securities made must for big unlisted private companies
"It is a matter of common knowledge that in the case of private companies, it is not rare that the shares of the company are registered in the name of persons who are not traceable, do not have valid PAN or similar identification numbers, or remain unidentified," said Payal Agarwal of Vinod Kothari Consultants. "Historically, dematerialisation of shares is looked upon by the government as a means to curb black money."
MCA tweaks rules; large unlisted private firms have to issue shares in demat forms
India's Ministry of Corporate Affairs (MCA) has mandated that large unlisted private companies, including unicorns, issue securities only in dematerialized form, giving them until the end of September 2024 to comply with the rule. The move is expected to enhance transparency in the financial market and encourage companies to disclose their share structures more openly.
How to convert your physical paper shares to demat
Here's a complete step-by-step process to convert physical shares into demat form.
From April 1, shares can be transferred in demat form only: Sebi
In December 2018, the watchdog extended the deadline for transfer of shares of listed companies only in dematerialised (demat) form to April 1.
Physical shares will become illiquid after March 31: Here's how to demat them
If you haven't demated your physical shares here is a look at what will happen to those shares and how you can dematerialise them before the March 31 deadline.
Dematerialisation of shares: How companies race against time and investors reminisce about a bygone era
More than two decades after dematerialisation of physical shares, investors still love to hold on to paper shares
From Oct 2, unlisted companies to issue new shares in demat form: Government
The Corporate Affairs Ministry believes that elimination of risks associated with physical certificates would be a key benefit of having shares in demat form.
Govt to make it compulsory for unlisted cos to issue shares in demat form
The unlisted corporates would have to ensure that shares are transferred only in dematerialised (demat) or electronic form.
Say goodbye to share certificates, you have time till December to go demat
Many investors, especially senior citizens, still hold shares in physical form.
CDSL surges 11% on demat share buzz
There are reports that the government will press ahead with the process in next few weeks.
Unlisted companies have to demat shares
The move will also have significant implications for foreign investors, especially in tightly-regulated sectors where 100 per cent FDI is still not per mitted.
Angels offer to dematerialise unlisted shares to solve row
Move comes as angel investors expect govt to make dematerialising of unlisted shares mandatory.
Government plans to dematerialise shares of unlisted companies to crack down on black money
About 70,000 public limited companies are unlisted and more than 1million private limited companies are registered with the corporate affairs ministry.
What to do with physical share certificates of deceased family members
After receiving the requisite documents, the company will issue physical share certificate in the name of new holders (nominees/joint holders/legal heirs).
Public cos to keep certificates in a dematerialised form
All public companies that have raised money through issue of shares, debentures or financial instruments will have to keep their certificates in a dematerialised form.
Dematerialising shares in your maiden name
Many women investors have paper certificates that are in their maiden names. It is tough to sell these shares in the market to realise their value unless they are converted to the demat form.
IPO share transfer under Sebi glare
Sebi is considering a proposal that seeks to restrict transfer of equity shares of a company before it is listed, in a move clearly aimed at reducing large-scale off-market transactions of the nature witnessed in recent IPO.
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