Question
The government has mandated all private companies, other
than small companies, to dematerialise their shares by _________ & is expected to boost transparency and oversight of the financial system.Solution
The government has mandated all private companies, other than small companies, to dematerialise their shares by September 30, 2024. The move is expected to boost transparency and oversight of the financial system. The Ministry of Corporate Affairs (MCA’s) move to facilitate the dematerialisation of shares for specific categories of private companies is a significant step towards ensuring the integrity of financial markets. Besides enhancing the ease of doing business in India, this will decrease fraudulent activities in dealings with physical shares.
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