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    Question

    As per the Companies Act and related Rules, every

    private company , other than _____, is required to issue securities only in a dematerialised form and facilitate dematerialisation of all its securities .  
    A Subsidiary company Correct Answer Incorrect Answer
    B Small company Correct Answer Incorrect Answer
    C Associate company Correct Answer Incorrect Answer
    D One-person company Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    9B. Issue of securities in dematerialised form by private companies:-   (1) Every private company, other than a small company , shall within the period referred to in sub-rule (2) –   (a) issue the securities only in dematerialised form; and   (b) facilitate dematerialisation of all its securities,  
    (2) A private company, which as on last day of a financial year, ending on or after 31st March, 2023, is not a small company as per audited financial statements for such financial year, shall, within eighteen months of closure of such financial year, comply with the provisions of this rule. (extended to Juan 30, 2025).   Provided that a producer company covered under this sub-rule shall, within a period of five years of closure of such financial year, comply with the provision of this sub-rule.  

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