Lok Sabha Question No. 163 (STARRED), answered on 2017-12-29
Subject: Dematerialisation of Shares of Unlisted Companies
Ministry: CORPORATE AFFAIRS
Asked by: BIDYUT BARAN MAHATO, NARANBHAI KACHHADIA

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## ANSWERED ON FRIDAY, THE 29TH DECEMBER, 2017/

## LOK SABHA STARRED QUESTION NO. 163 PAUSHA 8, 1939 (SAKA)

## DEMATERIALISATION OF SHARES OF UNLISTED COMPANIES

## QUESTION

*163.  SHRI BIDYUT BARAN MAHATO: SHRI NARANBHAI KACHHADIYA:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री

be pleased to state:

- (a)  whether  the  Government  proposes  to  make  it  mandatory  for  unlisted companies to dematerialise their shares;
- (b)  if so, the details and the aims and objectives thereof along with the number of registered unlisted Public Limited Companies and Private Limited Companies, State/UT-wise;
- (c)    whether  his  Ministry  has  discussed  the  issue  with  the  Securities  and Exchange Board of India (SEBI) and depositories;
- (d)  if so, the details thereof and their response in  the matter; and
- (e)  the  time  by  which  the  process  of  dematerialisation  of shares  of  unlisted companies is likely to be completed?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS                    (SHRI ARUN JAITLEY) कारपोरेट कार्य मंत्री (श्री अरुण जेटली)

(a) to (e):- A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE STARRED  QUESTION  NO.  163  FOR  ANSWER  IN  LOK  SABHA  ON 29.12.2017 (a)  to  (e):-    The  Companies  Act,  2013  [Section  29]  provides  for  the Government to mandate that, as in the case of listed public companies, other classes of public companies should also issue securities only in dematerialized  form.  Accordingly,  the  Ministry  has  carried  out  a consultation with SEBI, depositories and other stakeholders to mandate, in a phased manner, for public unlisted companies to issue securities  in  dematerialized  form  with  a  view  to  bringing  in  greater transparency in shareholding and share transactions, better acceptance of such shares as collateral and mitigation of disputes and risks associated with securities issued in paper form. SEBI had in their response stated that its depository regulatory framework enables such prescription.  No  final  decision  on  prescription  of  classes  of  public companies  has  yet  been  taken.  The  State/UT-wise  details  of  active registered unlisted Public Limited Companies and unlisted Private Limited Companies are attached as Annexure.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO THE STARRED QUESTION NO. 163 FOR ANSWER IN LOK SABHA ON 29.12.2017

| State/UT-wise number of Active unlisted Public Limited Companies and Active unlisted Private Limited Companies (as on 20.12.2017)   | State/UT-wise number of Active unlisted Public Limited Companies and Active unlisted Private Limited Companies (as on 20.12.2017)   | State/UT-wise number of Active unlisted Public Limited Companies and Active unlisted Private Limited Companies (as on 20.12.2017)   | State/UT-wise number of Active unlisted Public Limited Companies and Active unlisted Private Limited Companies (as on 20.12.2017)   |
|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| Sl. No.                                                                                                                             | State/UT                                                                                                                            | Number of Unlisted Public Limited Companies                                                                                         | Number of Unlisted Private Limited Companies                                                                                        |
| 1                                                                                                                                   | Andaman& Nicobar                                                                                                                    | 6                                                                                                                                   | 294                                                                                                                                 |
| 2                                                                                                                                   | Andhra Pradesh                                                                                                                      | 1072                                                                                                                                | 19423                                                                                                                               |
| 3                                                                                                                                   | Arunachal Pradesh                                                                                                                   | 19                                                                                                                                  | 208                                                                                                                                 |
| 4                                                                                                                                   | Assam                                                                                                                               | 464                                                                                                                                 | 5677                                                                                                                                |
| 5                                                                                                                                   | Bihar                                                                                                                               | 1009                                                                                                                                | 18612                                                                                                                               |
| 6                                                                                                                                   | Chandigarh                                                                                                                          | 669                                                                                                                                 | 7150                                                                                                                                |
| 7                                                                                                                                   | Chattisgarh                                                                                                                         | 479                                                                                                                                 | 6393                                                                                                                                |
| 8                                                                                                                                   | Daman and Diu                                                                                                                       | 30                                                                                                                                  | 187                                                                                                                                 |
| 9                                                                                                                                   | Delhi                                                                                                                               | 11607                                                                                                                               | 197333                                                                                                                              |
| 10                                                                                                                                  | Dadra &Nagar Haveli                                                                                                                 | 42                                                                                                                                  | 317                                                                                                                                 |
| 11                                                                                                                                  | Goa                                                                                                                                 | 177                                                                                                                                 | 3887                                                                                                                                |
| 12                                                                                                                                  | Gujarat                                                                                                                             | 4464                                                                                                                                | 55919                                                                                                                               |
| 13                                                                                                                                  | Himachal Pradesh                                                                                                                    | 239                                                                                                                                 | 3133                                                                                                                                |
| 14                                                                                                                                  | Haryana                                                                                                                             | 977                                                                                                                                 | 28249                                                                                                                               |
| 15                                                                                                                                  | Jharkhand                                                                                                                           | 455                                                                                                                                 | 8742                                                                                                                                |
| 16                                                                                                                                  | Jammu &Kashmir                                                                                                                      | 151                                                                                                                                 | 2396                                                                                                                                |
| 17                                                                                                                                  | Karnataka                                                                                                                           | 1803                                                                                                                                | 62693                                                                                                                               |
| 18                                                                                                                                  | Kerala                                                                                                                              | 1656                                                                                                                                | 28221                                                                                                                               |
| 19                                                                                                                                  | Lakshadweep                                                                                                                         | 1                                                                                                                                   | 9                                                                                                                                   |
| 20                                                                                                                                  | Maharashtra                                                                                                                         | 13030                                                                                                                               | 210367                                                                                                                              |
| 21                                                                                                                                  | Meghalaya                                                                                                                           | 102                                                                                                                                 | 463                                                                                                                                 |
| 22                                                                                                                                  | Manipur                                                                                                                             | 23                                                                                                                                  | 370                                                                                                                                 |
| 23 24                                                                                                                               | Madhya Pradesh                                                                                                                      | 1346 5                                                                                                                              | 20187                                                                                                                               |
|                                                                                                                                     | Mizoram                                                                                                                             |                                                                                                                                     | 54                                                                                                                                  |
| 25                                                                                                                                  | Nagaland                                                                                                                            | 19                                                                                                                                  | 210                                                                                                                                 |
| 26                                                                                                                                  | Orissa                                                                                                                              | 881                                                                                                                                 | 13773                                                                                                                               |
| 27                                                                                                                                  | Punjab                                                                                                                              | 1639                                                                                                                                | 14750                                                                                                                               |
| 28                                                                                                                                  | Pondicherry                                                                                                                         | 60                                                                                                                                  | 1163                                                                                                                                |
| 29                                                                                                                                  | Rajasthan                                                                                                                           | 1522                                                                                                                                | 34488                                                                                                                               |
| 30                                                                                                                                  | Sikkim                                                                                                                              | 0                                                                                                                                   | 2                                                                                                                                   |
| 31                                                                                                                                  | Telangana                                                                                                                           | 4167                                                                                                                                | 62574                                                                                                                               |
| 32                                                                                                                                  | Tamil Nadu                                                                                                                          | 4447                                                                                                                                | 69587                                                                                                                               |
| 33                                                                                                                                  | Tripura                                                                                                                             | 30                                                                                                                                  | 260                                                                                                                                 |
| 34 35                                                                                                                               | Uttar Pradesh                                                                                                                       | 3884 277                                                                                                                            | 63340                                                                                                                               |
|                                                                                                                                     | Uttarakhand                                                                                                                         |                                                                                                                                     | 4250                                                                                                                                |

| 36   | West Bengal   |   9311 |   124148 |
|------|---------------|--------|----------|
|      | Total         |  66063 |  1068829 |

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