Companies Act Section 29 — Public offer of securities to be in dematerialised form

CHAPTER III PROSPECTUS AND ALLOTMENT OF SECURITIES

Commercial / Corporate

Summary

Sub-section (1) states that, despite anything else in this Act, every company making a public offer, and any other class of companies that may be prescribed by rules, must issue its securities only in dematerialised form. This must be done by following the Depositories Act, 1996 and the regulations made under it.

Sub-section (1A) states that for such classes of unlisted companies as may be prescribed, the securities must be held or transferred only in dematerialised form, in the manner laid down in the Depositories Act, 1996 and the regulations made under it.

Sub-section (2) states that any company not covered by sub-section (1) may choose to convert its securities into dematerialised form, or issue its securities in physical form as per this Act, or issue them in dematerialised form as per the Depositories Act, 1996 and its regulations.

Official Text

(1) Notwithstanding anything contained in any other provisions of this Act,—

(a) every company making public offer; and

(b) such other class or classes of 1*** companies as may be prescribed, shall issue the securities only in dematerialised form by complying with the provisions of the Depositories Act, 1996 (22 of 1996) and the regulations made thereunder. 2[

(1A) In case of such class or classes of unlisted companies as may be prescribed, the securities shall be held or transferred only in dematerialised form in the manner laid down in the Depositories Act, 1996 and the regulations made thereunder.]

(2) Any company, other than a company mentioned in sub-section (1), may convert its securities into dematerialised form or issue its securities in physical form in accordance with the provisions of this Act or in dematerialised form in accordance with the provisions of the Depositories Act, 1996 (22 of 1996) and the regulations made thereunder.