Max Financial Services Limited (MFSL) has announced its adherence to Regulation 74(5) of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018, for the quarter ended June 30, 2025. This confirmation, received from its Registrar and Share Transfer Agent (RTA), Mas Services Limited, assures that all dematerialization requests during the first quarter of the financial year 2025-26 were processed within the stipulated 15-day timeframe. The company submitted this compliance certificate to both BSE Limited and the National Stock Exchange of India Limited on July 7, 2025, reinforcing its commitment to regulatory transparency and investor protection.
The certificate, issued by Mas Services Limited and dated July 4, 2025, specifically confirms that all securities received from Depository Participants for dematerialization during the period from April 1, 2025, to June 30, 2025, were duly confirmed (accepted or rejected) to the Depositories within 15 days of their receipt. Furthermore, the RTA has verified that the security certificates received for dematerialization during this period were meticulously mutilated and cancelled after due verification. Following this, the names of the Depositories were substituted in the company's register of members as the registered owner, also within the prescribed 15-day period from the receipt of the security certificates from the Participants. This update was subsequently communicated to both the Depository and every Stock Exchange where MFSL's securities are listed, adhering to the same 15-day timeline. The filing was signed by Piyush Soni, Company Secretary & Compliance Officer of Max Financial Services Limited.
Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, is a crucial provision designed to safeguard the interests of investors and ensure the integrity of the securities market. This regulation mandates that companies, through their RTAs, must confirm the timely processing of dematerialization requests. The core objective is to ensure that physical share certificates submitted for conversion into electronic form are processed efficiently and accurately. The 15-day timeline is a critical component, preventing undue delays in the dematerialization process, which could otherwise inconvenience investors and hinder trading activities. Adherence to this regulation is a fundamental aspect of corporate governance, reflecting a company's commitment to maintaining robust and transparent share transfer mechanisms. It also plays a vital role in reducing the risks associated with physical share certificates, such as loss, theft, or forgery, by facilitating their conversion into a secure electronic format.
The dematerialization process is a cornerstone of modern securities markets, enabling investors to hold shares in an electronic format rather than physical certificates. This process significantly enhances the ease of trading, transfer, and management of securities. Max Financial Services Limited's consistent compliance with Regulation 74(5) provides a strong assurance to its shareholders regarding the security and efficiency of their investments. When shareholders submit physical shares for dematerialization, they rely on the company and its RTA to process these requests promptly and accurately. The confirmation of mutilation and cancellation of physical certificates, followed by the updating of the register of members with the Depository's name, ensures that the ownership transition from physical to electronic form is seamless and legally sound. This meticulous process is essential for maintaining investor confidence in the electronic holding system and the overall market infrastructure.
For listed entities like Max Financial Services Limited, routine compliance filings such as the Regulation 74(5) certificate are standard periodic disclosures. While these filings typically do not trigger significant market movements, they are indispensable for maintaining the operational integrity and regulatory standing of the company. They underscore the company's commitment to adhering to the stringent norms set by market regulators like SEBI. Such consistent compliance contributes to a positive perception among investors and analysts, signaling a well-governed entity that prioritizes regulatory adherence and investor protection. The timely submission of these certificates ensures that the company remains in good standing with stock exchanges and depositories, fostering a reliable and trustworthy environment for its shareholders.
Compliance Details
The certificate, issued by Mas Services Limited and dated July 4, 2025, specifically confirms that all securities received from Depository Participants for dematerialization during the period from April 1, 2025, to June 30, 2025, were duly confirmed (accepted or rejected) to the Depositories within 15 days of their receipt. Furthermore, the RTA has verified that the security certificates received for dematerialization during this period were meticulously mutilated and cancelled after due verification. Following this, the names of the Depositories were substituted in the company's register of members as the registered owner, also within the prescribed 15-day period from the receipt of the security certificates from the Participants. This update was subsequently communicated to both the Depository and every Stock Exchange where MFSL's securities are listed, adhering to the same 15-day timeline. The filing was signed by Piyush Soni, Company Secretary & Compliance Officer of Max Financial Services Limited.
Regulatory Framework
Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, is a crucial provision designed to safeguard the interests of investors and ensure the integrity of the securities market. This regulation mandates that companies, through their RTAs, must confirm the timely processing of dematerialization requests. The core objective is to ensure that physical share certificates submitted for conversion into electronic form are processed efficiently and accurately. The 15-day timeline is a critical component, preventing undue delays in the dematerialization process, which could otherwise inconvenience investors and hinder trading activities. Adherence to this regulation is a fundamental aspect of corporate governance, reflecting a company's commitment to maintaining robust and transparent share transfer mechanisms. It also plays a vital role in reducing the risks associated with physical share certificates, such as loss, theft, or forgery, by facilitating their conversion into a secure electronic format.
Process and Shareholder Assurance
The dematerialization process is a cornerstone of modern securities markets, enabling investors to hold shares in an electronic format rather than physical certificates. This process significantly enhances the ease of trading, transfer, and management of securities. Max Financial Services Limited's consistent compliance with Regulation 74(5) provides a strong assurance to its shareholders regarding the security and efficiency of their investments. When shareholders submit physical shares for dematerialization, they rely on the company and its RTA to process these requests promptly and accurately. The confirmation of mutilation and cancellation of physical certificates, followed by the updating of the register of members with the Depository's name, ensures that the ownership transition from physical to electronic form is seamless and legally sound. This meticulous process is essential for maintaining investor confidence in the electronic holding system and the overall market infrastructure.
Market Context
For listed entities like Max Financial Services Limited, routine compliance filings such as the Regulation 74(5) certificate are standard periodic disclosures. While these filings typically do not trigger significant market movements, they are indispensable for maintaining the operational integrity and regulatory standing of the company. They underscore the company's commitment to adhering to the stringent norms set by market regulators like SEBI. Such consistent compliance contributes to a positive perception among investors and analysts, signaling a well-governed entity that prioritizes regulatory adherence and investor protection. The timely submission of these certificates ensures that the company remains in good standing with stock exchanges and depositories, fostering a reliable and trustworthy environment for its shareholders.
