DRAFT COMPANIES (DEMATERIALIZATION OF CERTIFICATES) RULES, 2011 - Companies Law - NO. 17/143/2011-CL.V

DRAFT COMPANIES (DEMATERIALIZATION OF CERTIFICATES) RULES, 2011 CIRCULAR [NO. 17/143/2011-CL.V], DATED 6-6-2011 The Ministry of Corporate Affairs is considering to issue Companies (Dematerialization of Certificates) Rules, 2011 so that all public Companies and their subsidiaries which have raised money by issue of shares, debentures, by accepting public deposits, stock, bond or any other financial instruments from public, other than from directors of the company, shall be required to issue and keep such share certificates, debenture certificates and certificates issued for receipt of deposits, stock, bond or any other financial instruments in dematerialized form only, in the manner prescribed in the Depositories Act, 1996 and regulation made thereunder. You are requested to examine the draft rules and furnish your comments/recommendations to the Ministry latest by 30th June, 2011 by e-mail on the following e-mail addresses: [email protected] [email protected] DRAFT NOTIFICATION In exercise of the powers conferred by clause (b) of sub-section (1) of section 642, read with sections 84, 58(A), 610B 610C of the Companies Act, 1956, the Central Government hereby makes the following rules, namely: Short title and commencement 1. (1) These rules may be called the Companies (Dematerialization of Certificates) Rules, 2011 (2) They shall come into force from 1st October, 2011. In these rules, unless the context otherwise requires 2. (a) "Act" means the Companies Act, 1956 (1of 1956); (b) "certificate" means share certificate, debenture certificate, deposit certificate, stock, bond or any other certificate or financial instrument through which money has been raised from the public; (c) The words expressions used in these rules but not defined in these rules shall have the same meanings respectively assigned to them in the Act or Depositories Act, 1996. 3. All public Companies and their subsidiaries which have raised money by issue of shares, debentures, by accepting public deposits, stock, bond or any other financial instruments from public, other than from directors of the company, shall issue and keep such share certificates, debenture certificates and certificates issued for receipt of deposits, stock, bond or any other financial instruments in dematerialized form only, in the manner prescribed in the Depositories Act, 1996 and regulation made thereunder. 4. The companies falling in above categories shall convert their existing such certificates mentioned in para (3) above into dematerialized form by 30th September, 2011.