New Delhi, Oct 30 (KNN) The central government has made it compulsory for all private companies to facilitate dematerialisation of existing securities till end of September 2024.

It has exempted small firms with a capital under Rs 4 crore and turnover less than Rs 40 crore and government companies from this mandate.

The Ministry of Corporate Affairs (MCA) said that no private company can issue or buy-back its securities after September 30, 2024, until the entire holding of securities of its promoters, directors and key managerial personnel have been dematerialised.

Also, every holder of securities who intends to transfer such securities on or after September 30, 2024 shall get them dematerialised before the transfer.

Those private firms that are neither holding nor subsidiary companies will be spared from the burden of dematerialisations.

(KNN Bureau)