The Securities and Exchange Board of India (SEBI) wants to change the rules so that companies must issue securities only in electronic format (demat form) when they split or combine their shares. This move is aimed at getting more people to use digital forms of securities, making it easier and safer for everyone.
If someone wants to buy these shares but does not have a demat account, the company will have to open one for them where the shares can be stored until they set up their own account. This plan is part of SEBI’s effort to make the process more efficient and user-friendly.
Recently, SEBI posted a paper asking for public suggestions on this idea. They want to hear what people think before making any changes.
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