Dematerialization of Shares Now Mandatory for Private Companies | Deadline: 30 June 2025
In a major regulatory development, the Ministry of Corporate Affairs (MCA), Government of India, has made dematerialization of shares mandatory for all private limited companies . This move, aimed at improving transparency, corporate governance, and ease of doing business, brings private companies in line with practices already mandatory for public companies. The deadline to complete the dematerialization process is 30 June 2025 , giving private entities just over a year to comply with the new requirement. What is Dematerialization? Dematerialization refers to the process of converting physical share certificates into electronic form , which can then be held in a Demat account with a Depository Participant (DP). This is similar to how investors hold shares of listed companies. Until now, dematerialization was largely applicable to listed entities and certain unlisted public companies . However, with increasing demand for corporate transparency and better regulatory control, the ...