Dematerialisation of shares for private firms to increase compliance burden

Gaurav Pingle, a Pune-based company secretary, explains the implications of the Companies (Amendment) Act, 2019, which contemplates dematerialisation of shares of private companies:  

1. What is the meaning of dematerialisation?

Dematerialisation is a process through which physical share certificates of an investor are given to the company and an equivalent number of shares are credited into his Demat account in electronic form. The process is similar to depositing cash in the bank account of an individual, i.e. currency notes getting converted into electronic form. Dematerialisation of shares improves transparency and efficiency of the shareholders and the company. The process eases