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Why dematerialise shares?

April 26, 2017dematerialise Shares

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Why dematerialise shares?

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• Trading in Compulsory Demat SEBI has notified various companies whose shares shall be traded in demat form only. By virtue of such notification, the shares of the Company are also subject to compulsory trading in demat form on the Stock Exchanges. • Benefits of Demat • Immediate transfer of shares. • No formal registration required. • No stamp duty applicable. • No additional holding/transaction cost to Shareholders pursuant to SEBI directions of January 28,2005. • No requirement for approval of Board of Directors of the Company for transfers. • Quick settlements. • Shareholders need not worry about the space required for preserving certificates in case of large holdings. • Avoidance of loss through loss in transit, theft, mutilation, forging of share certificates. • Widely accepted for pledging against borrowings with lower interest rates. • SEBI Guidelines prescribe further issues in electronic mode only. • Facilitates the Company to determine entitlements easily and faster. • Deta