From Oct 2, unlisted firms will issue new shares in demat form, says govt

Unlisted public companies have to compulsorily issue new shares in demat form beginning October 2, the government said on Tuesday, amid continuing efforts to curb illicit fund flows.
 
Besides, transfer of shares by these companies has to be done only in the demat or electronic form.
 
This step has been taken for “further enhancing transparency, investor protection and governance in the corporate sector”, the Corporate Affairs Ministry said in a release.
 
The decision also comes at a time when the ministry is clamping down on shell companies that are suspected of being conduits for illicit fund flows.