|
Q1 |
Does
the applicant get preference in allotment
if he applies in dematerialised form?
|
| |
The basis of
allotment is independent of the form
(physical/ dematerialised) in which
securities are applied. Thus the applicant
won't get preference in allotment
if he applies for securities in dematerialised
form. |
|
Q2 |
In
case the applicant applies for dematerialised
securities without having a depository
account, will NSDL open a beneficiary
account to credit these?
|
| |
No, in such
case the securities would be allotted
in the physical form by default. Depository
account can be opened only by the
prospective account holder or his
power of attorney. |
|
Q3 |
If
the applicant is allotted securities
in dematerialised form, but the details
regarding my beneficiary account are
incomplete/ wrong, will he get physical
delivery of allotted securities?
|
| |
Yes, securities
would be despatched in the physical
form. |
|
Q4 |
If
the applicant is allotted securities
in dematerialised form, when will
he get electronic credit in his account?
|
| |
If securities
are allotted in the dematerialised
form, these would be credited to applicants
account any day between allotment
date and listing date, at the discretion
of the company. |
|
Q5 |
How
will the applicant come to know that
his application for public issue in
electronic form has been accepted?
|
| |
The issuer company/
their R&T agent will forward the
applicant the allotment advise giving
the number of shares allotted in dematerialised
form. |
|
Q6 |
Is
it compulsory for a company making
public issue of any security of rupees
ten crore or more to issue the same
only in dematerialised form?
|
| |
No. However,
an amendment to the company law requiring
all future public issues above Rs 10
crore to compulsorily offer securities
in dematerialised form is awaiting
legislative approval. |
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