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ISSUE OF SECURITIES IN DEMATERIALISED FORM BY
UNLISTED PUBLIC COMPANIES:
Every Unlisted Public Company shall issue its
securities in dematerialized form and facilitate dematerialization of all its
existing securities as well.
FORM PAS-6 (RECONCILIATION OF SHARE CAPITAL AUDIT REPORT ON HALF YEARLY
BASIS) AND ITS APPLICABILITY
The Ministry of
Corporate Affairs has introduced a new form i.e. Form PAS-6 (Reconciliation of
Share Capital Audit Report on a half-yearly basis) which is basically used for
the reconciliation of the share capital audit report on the half-year basis.
notification was introduced pursuant to Rule 9A of Companies (Prospectus and
Allotment of Securities) Rules, 2014 as amended vide Companies (Prospectus and
Allotment of Securities) Third Amendment Rules, 2019 dated 22nd May,
2019 and it became effective from 30th September 2019.
1. WHAT IS DEMTERIALISATION
A paperless form
of trading in shares whereby share transactions and transfers are processed
electronically without involving any share certificate or transfer deed after
the share certificate has been converted from physical to electronic form.
An investor who wants to dematerialize his share needs to
open DEMAT account with depositary participant (a market intermediary through
which investors can avail depository services). Investor surrenders his
physical shares and get electronic shares in turn to his demat account.
2. APPLICABILITY OF
This rule shall be
Ø Every Unlisted Public
Ø Every Private Company
which is a Subsidiary of Public Company (deemed to be a Public Company) ;
is mandatorily required
to dematerialize its existing securities as well as new issue of securities.
per sub Rule 8 of Rule 9A of Companies (Prospectus and Allotment of Securities)
Rules, 2014, every unlisted public company shall submit Form PAS-6
(Reconciliation of Share Capital Audit Report) to the Registrar within sixty
days from the conclusion of each half year duly certified by a Company Secretary
in Practice or Chartered Accountant in Practice.
Every unlisted public
company is required to facilitate dematerialization of its shares and submit a
half-yearly reconciliation statement of shares in Form PAS-3. So, it is
mandatory for every Unlisted Public Company to convert their physical shares to
In case of
non-compliance of this rule, the company and every Officer/Director of the
company who is in default or such other person shall be punishable with fine
which may extend to ten thousand rupees, and where the contravention is
continuing one, with a further fine which may extend to one thousand rupees for
every day after the first during which the contravention continues.
Form PAS-6 was not made
available at the time of notification of these rules for half-year ended 30th
September, 2019 and hence, extension for filing of the Form was granted till
Sixty days from the deployment of this Form.
The said Form PAS-6 has been
deployed w.e.f 15th July, 2020 and is available for filing. The same
is required to be filed for half-year ended 30th September, 2019 and
31st March, 2020 within 60 days of deployment of the form, i.e. by
12th September, 2020.
above rule, Rule 9A of Companies (Prospectus and Allotment of Securities)
Rules, 2014 not applicable on the following unlisted public Companies: -
Date of Deployment of Form PAS-6
15th July, 2020.
Last Date of filling of Form
PAS-6 for the half year ended on 30.09.2019 can be file without additional fees
within 60 days from the date of deployment of Form on the website of the
Ministry (i.e. 60 days from 15th July, 2020).
of the Form
for filing of form vary depending upon the nominal Share Capital of the
Company. For fees applicable to your company refer the Companies (The
Registration of offices and Fees) Rules, 2014.
will be processed in Straight through Process (direct approval) mode.
Click Here for List of Key details Required for Form PAS-6
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