The confirmation certificate, issued by MUFG Intime India Private Limited (formerly Link Intime India Private Limited), the company's Registrar and Share Transfer Agent (RTA), attests to the timely and proper handling of securities received for dematerialisation during the specified quarter. This regulatory requirement is a cornerstone of investor protection and market efficiency in the Indian securities market.
Compliance Details
The certificate specifically confirms several critical aspects of the dematerialisation process. Firstly, it verifies that all securities received from depository participants for dematerialisation during the quarter ended June 30, 2025, were duly confirmed (either accepted or rejected) to the depositories by MUFG Intime India Private Limited. This ensures that every request for converting physical shares into electronic form is processed and communicated back to the depositories.
Secondly, the RTA has confirmed that the securities comprised in the said certificates have been listed on the stock exchanges where the company's earlier issued securities are already listed. This step is vital to ensure that once shares are dematerialised, they are immediately available for trading on the exchanges, maintaining liquidity and market access for investors.
Furthermore, the certificate explicitly states that the security certificates received for dematerialisation were confirmed or rejected, and subsequently, the physical certificates were mutilated and cancelled after due verification by the depository participant. This process is crucial to prevent the re-circulation of physical certificates once they have been converted into electronic form, thereby mitigating risks of fraud and ensuring the uniqueness of each shareholding. Finally, the names of the depositories have been substituted in the company's register of members as the registered owner within the prescribed timelines, completing the legal transfer of ownership to the electronic system.
Role of Registrar and Share Transfer Agent (RTA)
MUFG Intime India Private Limited, as Schaeffler India's RTA, plays a pivotal role in this compliance. RTAs are critical intermediaries in the securities market, responsible for maintaining the records of shareholders on behalf of companies, processing share transfers, and facilitating dematerialisation and rematerialisation requests. Their adherence to strict regulatory guidelines, as evidenced by this certificate, is fundamental to the smooth functioning of the electronic shareholding system. The certificate, dated July 4, 2025, was submitted by Ashish Tiwari, VP - Legal & Company Secretary of Schaeffler India Limited, to the stock exchanges on July 7, 2025.
Significance of Dematerialisation
Dematerialisation is the process by which physical share certificates are converted into electronic form and held in a demat account. This system offers numerous benefits, including enhanced safety (eliminating risks of theft, loss, or damage of physical certificates), ease of transfer, reduced transaction costs, and improved liquidity. Regulation 74(5) specifically aims to ensure the integrity and efficiency of this conversion process, providing confidence to investors that their physical holdings are accurately and securely transformed into electronic records.
Regulatory Framework and Corporate Governance
The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018, are designed to regulate the functioning of depositories and depository participants, ensuring transparency, accountability, and investor protection in the Indian securities market. Compliance with Regulation 74(5) is a mandatory and routine filing for all listed entities, reflecting a company's commitment to robust corporate governance practices. By consistently adhering to such regulations, Schaeffler India demonstrates its dedication to maintaining accurate shareholder records and ensuring a secure environment for its investors.
Market Impact
While a routine compliance filing like this does not typically have a direct and immediate impact on the company's stock price or market performance, it plays a crucial role in reinforcing investor confidence. It signals to the market that Schaeffler India is diligent in meeting its regulatory obligations and maintaining high standards of operational integrity concerning its shareholding structure. This commitment to compliance contributes to the overall trust and transparency in the capital markets, benefiting all stakeholders.
