Which companies are required to convert the physical shares in to de-mat A/c & consequences for non compliance?

 

De-Materialisation (De-Mat) applicable Companies are:

1.  Section 8 Company (NGO)
2.  WOS or Subsidiary Company
3.  Holding Company
4.  Having more than 4 crores of paid-up capital
5.  Having more than 40 crores of turnover

What are the consequences and penalties for non-compliance?

In case the company or the security holders do not comply with the requirement to dematerialize their securities by 30 September 2024, the following consequences will apply:

1.  The company will not be able to issue/allot any type of securities.

2.  The security holder will not be able to transfer or subscribe for any type of security.

Monetary penalties on company and every officer in default:

On the company: INR 10,000 + INR 1,000 for each day violation continues. (Maximum limit is INR 200,000)

Every officer of the company who is in default – same as above.
(Maximum limit is INR 50,000)