S.P. Apparels Limited has announced its compliance with 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, crucial for maintaining the integrity and efficiency of the securities market, was communicated to the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited on July 8, 2025. The company's Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited (formerly known as Link Intime India Private Limited), issued the confirmation certificate on July 4, 2025. This certificate attests to the diligent processing of dematerialisation requests received from depository participants during the specified quarter.
Compliance Details
The certificate from MUFG Intime India Private Limited confirms several key aspects of compliance with Regulation 74(5):
Confirmation to Depositories: All securities received from depository participants for dematerialisation during the quarter ended June 30, 2025, were duly confirmed (accepted or rejected) to the respective depositories. This ensures that the electronic records accurately reflect the status of dematerialisation requests.
Listing on Stock Exchanges: The securities comprised in the dematerialised certificates have been listed on the stock exchanges where the company's previously issued securities are already listed. This ensures that the newly dematerialised shares are tradable on the recognized platforms.
Mutilation and Cancellation of Physical Certificates: The physical security certificates received for dematerialisation were confirmed or rejected, and subsequently, the confirmed certificates were meticulously mutilated and cancelled after due verification by the depository participant. This critical step prevents the re-use or misuse of physical certificates once they have been converted into electronic form.
Substitution in Register of Members: The names of the depositories have been accurately substituted in the company's register of members as the registered owner within the prescribed timelines. This ensures that the legal ownership of the shares is correctly updated to reflect the dematerialised holdings.
Regulatory Context and Significance
Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, is a cornerstone of investor protection and market efficiency in India. It mandates that companies and their RTAs adhere to strict timelines and procedures for processing dematerialisation requests. The primary objective of this regulation is to ensure a seamless and secure transition of physical share certificates into electronic form, thereby reducing the risks associated with physical securities such as theft, forgery, and loss. Compliance with this regulation is vital for maintaining the integrity of the share registry and fostering investor confidence in the electronic securities system. It ensures that investors who opt for dematerialisation can have their holdings accurately reflected and easily traded. For companies, timely compliance demonstrates robust corporate governance and adherence to regulatory standards, which is positively viewed by investors and market participants.
Company's Commitment
S.P. Apparels Limited, a Government of India recognised Three Star Export House, has consistently emphasized its commitment to regulatory compliance and transparent operations. The submission of this certificate underscores the company's dedication to fulfilling its obligations under SEBI regulations and ensuring the smooth functioning of its share transfer activities. The company's registered office is located at 39-A, Extension Street, Kaikattipudur, Avinashi, Tamil Nadu, India, and it operates with CIN No.: L18101TZ2005PLC012295. The confirmation from MUFG Intime India Private Limited, a part of MUFG Corporate Markets, a division of MUFG Pension & Market Services, further validates the robust processes in place for handling shareholder requests. MUFG Intime India Private Limited, with CIN: U67190MH1999PTC118368, is a key intermediary ensuring the smooth flow of dematerialisation processes in the Indian securities market.
Market Impact
While a routine compliance filing, the confirmation of adherence to Regulation 74(5) contributes to overall market confidence. It assures investors that the company's share transfer and dematerialisation processes are efficient and compliant with regulatory frameworks. Such consistent compliance helps in maintaining a healthy and transparent environment for trading and holding securities, indirectly supporting investor trust in the company's operational and governance standards.
