CDSL Gained 11.30 % on Demat Share Buzz During the Day
On Wednesday, it was observed that the shares of CDSL reacted positively. The shares reacted to the news that the government will dematerialize shares of unlisted corporate. It gained 11.30 per cent during the day.
Soon the government is about to press ahead with the process, starting with 80,000-90,000 public companies.
It is expected that the ministry of corporate affairs will announce the plan for dematerialization of shares over the next few weeks. This is expected because it wants to ensure the real ownership is revealed through the exercise, besides making it easier to track the shareholders.
Dematerialisation or demat is the process through which an investor’s physical share certificate gets converted to an electronic format.
At March-end 2017, there were close to 11.7 lakh active companies in India, but the requirement for dematerialisation of shares is in place only for around 8,000 listed entities. Recognising that immediate dematerialisation of shares for all companies is not feasible, the initial focus will be on public companies — a move that is expected to impact at least 5.5-6 crore shareholders of such unlisted companies, the report added.