Ministry of Corporate Affairs (MCA) has exempted such unlisted public companies, which are Nidhi Companies, Government Companies and Wholly Owned Subsidiary Companies, from complying with compulsory dematerialisation rules
Ministry of Corporate Affairs (MCA) issued a notification dated 22nd January, 2019 to alter Companies (Prospectus and Allotment of Securities) Rules, 2014 by adding a sub-rule to Rule 9 which states that all unlisted public companies are required to demat all its shares before 01st April, 2019.
This new sub-rule is giving an exemption to all unlisted public companies which are Nidhi Companies, Government Companies and Wholly Owned Subsidiary Companies from compliance of Rule 9 of such rules. This means that physical shares of such companies can still be transferred without dematerialisation even after the deadline of 01st April, 2019. Such companies are not required to do compliance of Rule 9.
Copy of Notification can be accessed below:
