Can letter of allotment be directly issued in demat form?
Letter of allotment issued to investors prior to issue of debenture certificates can be issued in demat form. These instruments will be identified separately as an unsecured instrument. On creation of charge, a separate ISIN will be allotted to the secured instrument. All balances under the old ISIN will be transferred to the new ISIN to represent a secured instrument.
Letter of allotment (LOA) issued to investors prior to issue of debenture certificates can be issued in demat form. On creation of charge, the issuer will have to submit the corporate action information form for conversion of LOA to Debentures/ Bonds and the description of the security will be changed in the system to reflect the conversion.
Related Questions
- If any investor requests for credit of rights / bonus allotment in dematerialised form without having a demat account, will CDSL open an account on its own to provide credit?
- Do the company has to pay stamp duty on securities issued directly in dematerialized form?
- Can letter of allotment be directly issued in demat form?
