NEW DELHI: There are around 10.68 lakh active unlisted private limited companies and 66,063 unlisted public limited companies operating in the country, the Lok Sabha was informed on Friday.
Over 10 lakh active unlisted private companies exist: Jaitley in Parliament
- Finance Minister Arun Jaitley said in parliament that around 10.68 lakh active unlisted private limited companies exist in India
- He said 66,063 unlisted public limited companies are also operating
- The government is in consultation with Sebi for deciding the fate of these companies
Jaitley said the Companies Act, 2013 (Section 29) provides power to the government to mandate that, as in the case of listed public companies, other classes of public companies should also issue securities in dematerialised form.
Accordingly, the ministry carried out consultations with Sebi, depositories and other stakeholders to mandate, in a phased manner, for public unlisted companies to issue securities in dematerialised form with a view to bring in greater transparency in shareholding and share transactions, better acceptance of such shares as collateral and mitigation of disputes and risks associated with securities issued in paper form.
Jaitley said the Sebi had in their response stated that its depository regulatory framework enables such prescription. No final decision on the prescription of classes of public companies has yet been taken, he said.