Section 29: Public offer of securities to be in dematerialised form
This section requires certain companies to issue securities in dematerialised form and allows others to choose their form of issue.
The section, clause by clause
What the section says
In plain terms
(1)Notwithstanding anything contained in any other provisions of this Act,—
Companies making a public offer and certain other prescribed classes of companies must issue securities only in dematerialised form, following the Depositories Act, 1996 and its regulations.
(1)(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.
(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.
Other companies can choose to convert their securities to dematerialised form or issue them in physical form according to this Act, or in dematerialised form according to the Depositories Act, 1996 and its regulations.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 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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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.