Introduction
The Indian corporate atmosphere has experienced key regulatory modifications to improve transparency and efficiency throughout securities operations. The Indian government has enacted a notable change by making private companies required to use electronic shareholding through compulsory dematerialization. The government introduced this move to simplify corporate governance procedures and eliminate corporate fraud and improve the business environment. This article analyzes the legal requirement of Private Company share dematerialization along with its results while explaining how to acquire an International Securities Identification Number (ISIN).
What is Dematerialisation?
Security owners can convert their paper-based share certificates to digital format through Dematerialisation by establishing accounts with a Deposition Participant (DP) agency. The security enhancement and improved transaction ease become possible through this process since it removes the requirement of manual share handling.
The Securities and Exchange Board of India (SEBI) together with the Ministry of Corporate Affairs (MCA) operates in India to promote dematerialization because it helps prevent fraud and duplicate share certificates and lost securities.