Question

Explain the Securities duties in issuing securities in dematerialization form.

Answer 1

The secretary of Issuer Company has to perform the following duties in respect of issuing securities in electronic form.

1. The Secretary has to ensure that the draft prospectus has been filled with the SEBI through an eligible Merchant Banker, at least 21 days prior to the filling of the prospectus with the Registrar of Companies. SEBI suggests changes in the draft prospectus. The issuer company (it is a company that makes an issue of securities) carries out such changes in it before filing a prospectus with the Registrar of Companies.
2. The Secretary has to ensure whether the company's scrip (rule) come under compulsory dematerialized trading or not.
3. If dematerialized trading is compulsory, the secretary has to see that the company enters into an agreement with the depository.
4. The Secretary has to see that the company made an application for listing of securities on the stock exchanges.
5. The Secretary has to ensure that the company gives an option to the subscriber or the shareholder or the investor to receive a security certificate in dematerialized form with a depository.

6. The Secretary has to intimate details of allotment to the depository immediately.