---
title: "How can shareholders of Indian Private companies open a demat account with Arrow to comply with the MCA Regulation?"
description: "As per the Ministry of Corporate Affairs (MCA) circular, shareholders and investors in Indian unlisted private companies must dematerialise their…"
category: account-opening
subcategory: nri
slug: how-can-shareholders-of-indian-private-companies-open-a-demat-account-with-irage
canonical: https://support.arrow.trade/account-opening/nri/how-can-shareholders-of-indian-private-companies-open-a-demat-account-with-irage/
---

# How can shareholders of Indian Private companies open a demat account with Arrow to comply with the MCA Regulation?

> As per the Ministry of Corporate Affairs (MCA) circular, shareholders and investors in Indian unlisted private companies must dematerialise their…

## Short answer

As per the Ministry of Corporate Affairs (MCA) circular, shareholders and investors in Indian unlisted private companies must dematerialise their shares and hold them in a demat account.

To open a demat account with Arrow to dematerialise and hold these shares, please create a ticket. iRage will respond within 48 hours. This applies to Indian Individuals, NRIs, Indian body corporates, foreign individuals, and foreign body corporates. Shareholders who already have a Demat account with Arrow can directly proceed with the share dematerialisation process.

## Key points from the MCA circular (Rule 9B)

Mandatory dematerialisation for private companies: Companies offering new securities, conducting buybacks, or issuing bonus/rights shares must ensure all shares held by promoters, directors, and key managerial personnel are fully dematerialised.

Obligations for security holders: Security holders must dematerialise securities before transferring them and ensure all holdings are in dematerialised form before subscribing to new securities.

## Who needs to comply with this regulation?

This regulation applies to all companies except Small Companies, which are defined as private companies with:

Paid-up share capital not exceeding ₹50 lakhs (or higher prescribed amount not exceeding ₹10 crores).

Turnover not exceeding ₹2 crores (or higher prescribed amount not exceeding ₹100 crores).

Holding companies, subsidiary companies, Section 8 companies, and companies governed by special acts are not considered small companies for this purpose.

## Broker details

iRage Broking Services LLP (SEBI registration INZ000011262), product name **Arrow**. Registered office: Gift City, Gandhinagar.

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Source: https://support.arrow.trade/account-opening/nri/how-can-shareholders-of-indian-private-companies-open-a-demat-account-with-irage/
Publisher: Arrow / iRage Broking Services LLP