The Ministry of Corporate Affairs (MCA) has launched the MCA V3 portal, a significant upgrade over the earlier V2 system. This transition marks a new era in corporate compliance, offering improved efficiency, transparency, and user experience for companies, professionals, and regulators.
Here are the key highlights that you need to know about the newly launched V3 portal and how it impacts your business.
The V3 portal is designed to promote “Ease of Doing Business” through automation and real-time data integration.
Key Improvements Over MCA V2
Feature
MCA V2 Portal
MCA V3 Portal
Forms
Static PDF-based filings
Web-based forms with dynamic fields and real-time validations
Login
Password-based
Email + OTP login for enhanced security
Filing Process
Manual attachments, repetitive data entry
Pre-filled fields, linked filings, and conditional STP (Straight Through Processing)
Dashboard
Basic interface
“My Application” dashboard for tracking drafts, submissions, and status
Validation
Errors detected post-submission
Real-time validation before submission, reducing rejections
Utility Mode
Excel/PDF uploads
Web forms with integrated Excel utility
Transition Support
Limited guidance
Detailed FAQs and guides for professionals
Benefits for Stakeholders
Companies & Professionals: Reduced compliance burden through automation and pre-filled data.
Regulators: Improved accuracy and transparency with real-time validations.
Public Users: Enhanced accessibility and security with OTP-based login.
Improvements at a glance:
The MCA V3 portal is not just an upgrade—it is a transformation of India’s corporate compliance ecosystem. By introducing web-based forms, real-time validations, and a modern dashboard, MCA has significantly improved efficiency, accuracy, and transparency. For professionals and companies, mastering V3 is now essential to ensure smooth compliance in the digital era.
Conclusions
The digital transformation of company registration through MCA V3, combined with the surge in new company & LLP formation, marks one of the most important recent trends in India’s corporate regulatory space. It reflects both policy reform and entrepreneurial energy.
For anyone looking to start a business, this is a good time — the system is getting more entrepreneur-friendly, incorporating healthy corporate practices and more conducive for new ventures.
The MCA V3 portal is a ambitious step toward a paperless, transparent corporate environment. While the learning curve and initial glitches are challenging, the long-term benefits of real-time processing and integrated compliance would save businesses significant time.
Ease of Doing Investment – Special Window for Re-lodgement of Transfer Requests of Physical Shares
The Securities and Exchange Board of India (SEBI) has announced a significant update aimed at helping investors who missed earlier deadlines for transferring physical shares. In a circular dated July 2, 2025 (Ref: SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97), SEBI is introducing a six-month special window to re-lodge transfer requests that were submitted before April 1, 2019 but rejected or unattended due to documentation issues.
🗓 Key Dates
Special window period: July 07, 2025 – January 06, 2026
Eligible transfers: Transfer deeds lodged prior to April 01, 2019 and returned/rejected/not processed due to deficiencies
🔍 What’s Changing?
Investors now get one final opportunity to re-lodge their transfer deeds.
All transfers under this window will be processed exclusively in demat mode.
Requests pending with RTAs or listed companies as of now are also covered.
🛠 Implementation Guidelines
Public Awareness: Stock Exchanges, RTAs, and listed companies must publicize the window bi-monthly through print and social media.
Dedicated Teams: RTAs and listed companies are required to create focused teams to handle these requests.
Monthly Reporting: RTAs/companies must submit reports to SEBI on:
Number of requests received, processed, approved, and rejected
Average processing time
Publicity measures taken (Format provided in Annexure-A of the circular)
🏛 Regulatory Backing
This move is powered by SEBI’s authority under:
Section 11(1) of the SEBI Act, 1992
Regulation 102 of the SEBI (LODR) Regulations, 2015
SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
💡 Why It Matters
For investors who were stuck due to missed deadlines or minor procedural lapses, this is a chance to reclaim their investments and bring their holdings into the digital demat ecosystem. It also aligns with SEBI’s ongoing efforts to protect investor rights and streamline the securities market.
In a significant move, the Ministry of Corporate Affairs (MCA) has extended the deadline for mandatory dematerialization of securities for certain private companies until June 30, 2025. This extension, announced through a notification dated February 12, 2025, grants more time for compliance under the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2025, which modifies the existing Companies (Prospectus and Allotment of Securities) Rules, 2014
The Ministry of Corporate Affairs (MCA) has officially extended the deadline for the mandatory dematerialization of securities for private companies.
According to the latest notification issued on February 12, 2025, the new compliance deadline has been pushed to June 30, 2025.
This amendment revises the Companies (Prospectus and Allotment of Securities) Rules, 2014, specifically Rule 9B, which mandates dematerialization for specific categories of private companies.
The official Notification is attached here for reference:
Key Highlights of the MCA Notification
Extension until June 30, 2025
The deadline for compliance with Rule 9B (2) has been extended from March 31, 2023, to June 30, 2025.
This provides private companies (other than small and producer companies) with more time to complete the dematerialisation of securities and obtain ISIN (International Securities Identification Number).
Applicability of the Rule
All private companies, excluding small companies and producer companies, are required to comply.
Companies that intend to issue new shares, transfer shares, or make any alterations in their capital structure must do so only in dematerialised form.
The objective of the Amendment
To ease the transition for private companies that have not yet complied.
To ensure greater market transparency and alignment with regulatory frameworks for public companies.
To facilitate smooth investor participation and digital securities transactions.
What is the Dematerialization of Shares?
Dematerialization is the process of converting physical share certificates and other securities into an electronic format, eliminating the need for paper-based documents. Once dematerialized, these securities are held in a demat account, which functions like a digital repository for financial instruments.
A depository is an entity that holds securities in an electronic form and facilitates seamless transactions. It ensures security, transparency, and ease of trading. In India, depositories are governed under the Depositories Act of 1996 and regulated by the Securities and Exchange Board of India (SEBI).
The two SEBI-registered depositories in India are:
NSDL (National Securities Depository Ltd.) – Primarily linked with the National Stock Exchange (NSE).
CDSL (Central Depository Services (India) Ltd.) – Associated with the Bombay Stock Exchange (BSE).
Rule 9B: Mandatory Dematerialization of Securities for Private Companies
In October 2023, the Ministry of Corporate Affairs (MCA) introduced Rule 9B under the Companies (Prospectus and Allotment of Securities) Rules, 2014. This regulation made it mandatory for certain private companies to dematerialize their securities, aligning them with corporate governance standards applicable to public companies.
Applicability of Dematerialization of Shares
The dematerialization of shares applies to various entities within the securities market, ensuring transparency, security, and ease of transactions.
Public Companies
All public companies in India are mandated to hold and transact their securities in dematerialized form.
Private Limited Companies
All private limited companies, except those categorized as small companies, must comply with dematerialization regulations.
Holding and Subsidiary Companies
Any private limited company that is a holding company or a subsidiary of another corporate entity must dematerialise its shares.
This applies even if the company qualifies as a small company under financial thresholds.
Small Companies – Exception to Dematerialization
A small company is defined as a private limited company that meets the following financial criteria:
Paid-up capital: INR4 crore (INR 40,000,000) or less
Turnover: INR40 crores (INR 400,000,000) or less in the preceding financial year
Small companies are exempt from mandatory dematerialisation unless they are:
A holding company of another entity
A subsidiary company of another corporate body
In these cases, they must comply with dematerialisation requirements, irrespective of their financial position.
Last date for Dematerialization of Physical Shares
Considering the challenges faced by companies in executing the dematerialisation process, the Ministry of Corporate Affairs (MCA) has extended the compliance deadline. The new last date for mandatory dematerialisation of shares is June 30, 2025, revised from the earlier deadline of September 30, 2024.
Implications of the Deadline Extension for Private Companies
For Non-Compliant Private Companies: Companies that have not obtained their ISIN or completed dematerialisation now have extra time to comply. They must coordinate with depositories (NSDL/CDSL), registrar & transfer agents (RTAs), and professionals to initiate the dematerialisation process.
For Companies already in Compliance: Those who have already obtained their ISIN and dematerialised securities will not be affected. However, they should continue ensuring that any new share issuance or transfer occurs only in dematerialised form.
How to Convert Physical Shares into Demat?
Converting physical share certificates into electronic form is a simple and efficient process. Below is a step-by-step guide to help complete the dematerialization process:
Step 1: Open a Demat Account
To begin, you need to open a Demat account with a Depository Participant (DP), such as a bank, stockbroker, or financial institution. This account will hold your shares in electronic form.
You must fill out an account opening form and provide essential details, including:
Bank account details (Account number, IFSC code, Bank name, and Branch address)
Identity and address proof
PAN card
Once your Demat account is successfully set up, you can initiate the dematerialization process.
Step 2: Submit a Demat Request Form (DRF)
Obtain a Demat Request Form (DRF) from your DP, complete it accurately, and sign it. Ensure that the names and signatures on the form match those on the share certificates and the company’s records.
Step 3: Verification and Processing
After submission, the DP will verify your details and issue a Dematerialization Request Number (DRN) to track the status of your request.
Step 4: Forwarding to Registrar and Share Transfer Agent (RTA)
Your DP will forward the dematerialization request along with your physical share certificates to the respective Registrar and Share Transfer Agent (RTA) of the issuing company.
Step 5: Conversion to Electronic Form
Once the RTA verifies and approves the request, your physical share certificates will be cancelled and converted into electronic form to prevent misuse.
Step 6: Credit to Your Demat Account
The dematerialized shares are then credited to your Demat account, allowing you to sell, transfer, or pledge them as needed.
Penalties for Non-Compliance with Dematerialization Requirements
Failure to comply with Rule 9B of the Companies Act, 2013, can result in serious consequences for private companies, including:
Restrictions on Securities Transactions: Companies failing to comply will be barred from issuing or allotting any securities, including those related to bonus issues and buybacks.
Limitations for Shareholders: Shareholders holding physical shares will be restricted from selling or transferring their securities. They may also lose eligibility for rights issues and dividend benefits.
Monetary Penalties for Companies
Penalties for Company Officers: Officers in default may face penalties of up to INR 50,000 for non-compliance.
Initial penalty: INR 10,000
Continuing penalty: INR 1,000 per day until compliance is met, up to a maximum of INR 200,000.
Conclusion
The extension of the dematerialisation deadline to June 30, 2025, provides much-needed relief for private companies, allowing them additional time to comply with Rule 9B of the Companies Act, 2013. Companies should take advantage of this extension to complete the demat process, obtain their ISIN, and ensure compliance to avoid penalties and restrictions on share transactions.
Frequently Asked Questions (FAQs)
What is the new deadline for the mandatory dematerialisation of private company shares?
The Ministry of Corporate Affairs (MCA) has extended the compliance deadline to June 30, 2025, from the earlier date of September 30, 2024.
Which companies are required to dematerialise their shares?
All private limited companies, except those categorised as small companies, must comply with the dematerialisation requirements under Rule 9B of the Companies Act, 2013. Additionally, holding and subsidiary companies must also dematerialise their shares, regardless of their size.
Are small companies exempt from the dematerialisation requirement?
Yes, small companies (those with a paid-up capital of INR4 crore or less and turnover of INR40 crore or less) are exempt. However, if they are a holding or subsidiary company, they must comply with the dematerialisation mandate.
What happens if a company does not complete the dematerialisation process by the deadline?
Non-compliant companies may face:
Restrictions on issuing or allotting securities, including bonus shares and buybacks.
Limitations for shareholders, preventing them from selling or transferring physical shares.
Monetary fines of INR 10,000, with an additional INR 1,000 per day until compliance is met (up to INR 2,00,000).
Penalties for company officers, with fines up to INR 50,000.
How can physical shares be converted into dematerialised form?
The dematerialisation process involves:
Opening a Demat account with a Depository Participant (DP).
Submitting a Demat Request Form (DRF) along with physical share certificates.
Verification and processing by the DP and Registrar & Share Transfer Agent (RTA).
Conversion to electronic format and crediting to your Demat account.
Which depositories handle dematerialisation in India?
The two SEBI-registered depositories in India are:
NSDL (National Securities Depository Ltd.)
CDSL (Central Depository Services (India) Ltd.)
Is dematerialisation required for new share issuances and transfers?
Yes, as per Rule 9B, all new share issuances and transfers must be conducted in dematerialised form. Companies that have already completed the demat process must ensure ongoing compliance for any future transactions.
How to get help with the dematerialisation process?
You can get help from professional bodies that provide end-to-end assistance for companies looking to dematerialise their shares through NSDL/CDSL. They help in documentation, coordination with depositories, and compliance filing to ensure a seamless transition to electronic shareholding.
SEBI made multiple relaxations for Indian firms, including market intermediaries and depositories, in terms of filing of financial details, disclosure on fund utilization and updating client records
The Securities and Exchange Board of India (SEBI), on Thursday, relaxed the deadline for listed Indian firms to announce their financial results in the wake of surging covid-19 cases in the so-called second wave of the pandemic in the country.
SEBI made multiple relaxations for Indian firms, including market intermediaries and depositories, in terms of filing of financial details, disclosure on fund utilization and updating client records.
In a circular, SEBI said listed Indian companies, which are currently required to announce their quarterly financial results within 45 days from the end of the quarter or by 15 May, 2021, are now allowed to file their March quarter results for fiscal 2021 by 30 June.
The deadline for filing annual audited financial results too has been extended by the markets regulator. Currently all companies are required to file their audited financials within 60 days from the end of the financial year, i.e. by 30 May. This deadline has been extended till 30 June, 2021 by SEBI.
“SEBI is in receipt of representations from listed entities, professional bodies, industry associations, market participants etc. requesting extension of timelines for various filings and relaxation from certain compliance obligations under the LODR (listing obligations and disclosure regulations) norms due to ongoing second wave of the CoVID-19 pandemic and restrictions imposed by various state governments,” said SEBI in its circular.
So far, 170-odd listed companies in India have announced their financial results for the March quarter and fiscal year 2021.
SEBI has also extended the deadline for companies to file their annual secretarial compliance report by a month till 30 June, 2021.
Also, the deadline for submitting the statement of deviation or variation in use of funds (along with the financial results) has been extended by a month till 30 June, 2021.
In a major relief to companies, the Securities and Exchange Board of India (SEBI) today extended the deadline for submission of financial results for the quarter, half-year, and financial year ended 30 June 2020 to September 15. The SEBI circular said that it has received representations requesting an extension of time for submission of financial results for the quarter or half year-ended 30 June 2020, due to the shortened time gap between the extended deadline for submission of financial results for the period-ended 31 March 2020 and the quarter or half year-ended June 30, 2020.
Under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR Regulations’), a listed entity is required to submit its quarterly, half-yearly, or annual financial results within 45 days or 60 days, as applicable, from the end of each quarter, half year, or financial year.
Accordingly, listed entities were required to submit the financial results for the quarter, half-year-ended 30 June 2020 on or before 14 August 2020.
Earlier, the regulatory body had also extended the timeline for submission of financial results by listed entities for the quarter, half-year, or financial year-ended 31 March 2020 to 31 July 2020, due to the impact of the coronavirus pandemic.
SEBI further said that today’s announcement shall come into force with immediate effect and advised all stock exchanges to bring the provisions of this circular to the notice of all listed entities.
It has asked the stock exchanges to bring the provisions of the circular to the notice of all listed entities and also disseminate on their websites.
Meanwhile, SEBI’s move to relax the deadlines is expected to give more time to companies already struggling with operations part amid the pandemic.
In-line with the efforts to provide relief to the sagging businesses, Finance Minister Nirmala Sitharaman earlier announced to decriminalise some offences under the Companies Act.
The SEBI has also introduced new norms to give more fund-raising flexibility to stressed firms.
The amendments can help promoters get financial investors on board without losing control of the company.
“There is a need to create a regulator or authority for data business, which provides centralized regulation for all non-personal data exchanges,” the government-appointed panel said in the report. Such a regulator would be armed with legal powers to request data, supervise data sharing requests and settle disputes“.
A formal Memorandum of Understanding (MoU) was signed today between the Central Board of Direct Taxes (CBDT) and the Securities and Exchange Board of India (SEBI) for data exchange between the two organizations.
The MoU was signed by Smt. Anu J. Singh, Pr. DGIT (Systems), CBDT, and Smt. MadhabiPuri Buch, Whole Time Member, SEBI in the presence of senior officers from both the organizations via video conference.
The MoU will facilitate the sharing of data and information between SEBI and CBDT on an automatic and regular basis.
In addition to regular exchange of data, CBDT and SEBI will also exchange with each other, on request and suo moto basis, any information available in their respective databases, for the purpose of carrying out scrutiny, inspection, investigation and prosecution,” SEBI said in a statement.
In addition to regular exchange of data, SEBI and CBDT will also exchange with each other, on request and Suo moto basis, any information available in their respective databases, for the purpose of carrying out their functions under various laws.
The MoU comes into force from the date it was signed and is an ongoing initiative of CBDT and SEBI, who are already collaborating through various existing mechanisms.
A Data Exchange Steering Group has also been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data-sharing mechanism.
The MoU marks the beginning of a new era of cooperation and synergy between SEBI and CBDT.
In the past, SEBI has cracked on several entities who had manipulated the stock prices of listed companies. The regulator had observed in the penny stock scam that promoters and market operators were using the stock exchange platform to evade taxes and launder black money.
ASSOCHAM Secretary said that by amending the FDI rules through the Press Note No 3 , the Department for Promotion of Industry and Internal Trade, has not only brought the FDI proposals for greenfield investments but also infusion into the existing projects, under the ‘government route’
The government has amended the Foreign Direct Investment
(FDI) policy to discourage opportunistic investment in Indian companies by
neighbouring countries in the midst of the Coronavirus pandemic.
This comes after China’s central bank recently raised stake
in Housing Development Finance Corporation (HDFC) to a little over 1 percent.
As per the new amendment, FDI investments into Indian
companies from the neighbouring countries will now require a nod from the
government. This will be applicable to all countries that share a land border
with India – such as China among others.
The amendment specifies that transfer of ownership of Indian
companies arising out of FDI investments from neighbouring countries will now
also be subject to government approval.
Similar FDI restrictions were earlier placed on Pakistan and
Bangladesh.
These changes were notified via a Press Note by the
Department for Promotion of Industry and Internal Trade (DPIIT).
As per the note, “Government has reviewed the FDI policy for
curbing opportunistic takeovers or acquisitions of Indian companies due to the
current COVID-19 pandemic.”
The note states: “A non-resident entity can invest in India,
subject to the FDI Policy except in those sectors/activities which are
prohibited. However, an entity of a country, which shares land border with
India or where the beneficial owner of an investment into India is situated in
or is a citizen of any such country, can invest only under the Government
route.”
“Further, a citizen of Pakistan or an entity incorporated in
Pakistan can invest, only under the Government route, in sectors/activities
other than defence, space, atomic energy and sectors/activities prohibited for
foreign investment,” it said.
“In the event of the transfer of ownership of any existing
or future FDI in an entity in India, directly or indirectly, resulting in the
beneficial ownership falling within the restriction/purview of the mentioned
sectors, such subsequent change in beneficial ownership will also require
Government approval,” it added.
The decision will take effect from the date of Foreign Exchange
Management Act (FEMA) notification.
Earlier, reports said that market regulator Securities and
Exchange Board of India (SEBI) was monitoring equity transactions in India by
Chinese companies and banks. Such transactions have come under the scanner at a
time when the share prices of companies have dropped due to the economic impact
of the coronavirus pandemic.
Globally, transactions by Chinese firms and institutions
have come under scrutiny recently since the assets are being purchased at low
valuations. Nations such as the US, Japan and Australia have already placed
restrictions on Chinese companies buying assets.
The Ministry of Corporate Affairs (MCA) has launched the MCA V3 portal, a significant upgrade over the earlier V2 system. This transition marks a new era in corporate compliance, offering improved efficiency, transparency, and user experience for companies, professionals, and regulators.
