The Securities and Exchange Board of India (SEBI) is pushing promoters of listed companies to completely dematerialize their holdings.
In a June 17, 2011 circular sent to all stock exchanges, SEBI has required the exchanges to ensure that a company's securities can only be traded on their 'normal segment' if the company's promoters and promoter group have fully dematerialized their shareholding by September 30, 2011, and reported this to the concerned exchanges. If a company does not meet this criterion, its securities will have to be traded in the 'trade for trade segment' of the exchanges.