Dematerialisation of securities

 

 

Rules [ Chapter III Part I The Companies (Prospectus and Allotment of Securities) Rules, 2014 ]

9 Dematerialisation of securities

The promoters of every public company making a public offer of any convertible securities may hold such securities only in dematerialised form:

Provided that the entire holding of convertible securities of the company by the promoters held in physical form up to the date of the initial public offer shall be converted into dematerialised form before such offer is made and thereafter such promoter shareholding shall be held in dematerialized form only.

Demateralisation of securities :  The entire holding of convertible securities of the company by the promoter held in physical form up tothe date of initial public offer shall be converted into dematerialised form before such officer is maed.  Promoter shareholding shall be held in demateriazlized form only

Convertible securities :  Convertible  preference shares,  convertible Debentures  etc.are few examples.

       Convertible preference shares can further be categorised into

            Compulsorily Convertible Preference Shares (CCPS) '

             Optionally Convertible Preference Shares

-   Convertible Debentures
-     Compulsorily convertible Debentures,	CCD
Optionally convertible Debentures	OCDs
Partially convertible Debentures	PCDs