As per Section 29 of Indian Companies Act 2013 every public offer of securities should be in dematerialized form. Provision in the Indian Companies Act 2013 regarding Public offer and dematerialization is as under.
(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.
1. The word "public" omitted by Act 22 of 2019, s. 7 (w.e.f. 15-8-2019).
2. Ins. by s. 7, ibid. (w.e.f. 15-8-2019).
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