In the recent amendment rules (3rd amendment rules), it has now become mandatory for all the unlisted public companies to issue and transfer their shares only in dematerialised forms.

If you have incorporated your company as a Public Company, then this compliance is necessary with effect from 2nd October 2018.

The reason for this step is to enhancing the transparency of hte function of the company, enhancing the protection of the investors and the elevating the governance of the corporate sector. To get the gist of it, the goal is to enhance the corporate governance standards through transparency Courtesy of this amendment, the unlisted public companies are required to facilitate dematerialization of their securities. This has to be done in coordination with the depositors of the company and a share transfer agent. A share transfer agent is someone that the unlisted company has to appoint. It is this agent that is going to provide the public company with the Registrar and share transfer services.

If there are any issues with dematerialization, the IEPF Authority is going to be the one to handle it.