Demat of unlisted company shares will enhance transparency: experts

Move will curb benami holdings, check capital gains tax evasion, among other malpractices

The Securities and Exchange Board of India (Sebi) and the Ministry of corporate affairs have been working to weed out several shell companies that emerged following the government's demonetisation move. One of the initiatives that is being considered is the dematerialisation of shares of public companies that aren't listed. 

Experts suggest this will essentially bring in more transparency in the functioning of these companies, as these companies may now have to issue electronic stocks in much the same format as listed companies do. 

Sumit Agrawal, Suvan Law Advisors and ex-Sebi Law Advisor, is of the opinion that the move will