Aaron Industries Limited, a well-known company in the industrial sector, has confirmed that SEBI Regulation 74(5) is not applicable to the company for the quarter ended 31st March 2025. This regulation, under the SEBI (Depositories and Participants) Regulations, 2018, mandates that companies verify and reconcile the total shareholding in dematerialized form with the depositories and ensure no requests for rematerialisation or dematerialization are pending.

In a formal submission to the National Stock Exchange of India Limited (NSE), the company clarified that all of its shares are held in demat form, and no member has requested rematerialisation or dematerialization during the quarter in question. The company also included a compliance certificate from Bigshare Services Pvt. Ltd., the Registrar and Share Transfer Agent (RTA) for Aaron Industries, affirming this position.

Details from the Compliance Certificate:

1. Dematerialized Shares:
   The company confirmed that 100% of its shares are held in dematerialized form. This negates the applicability of Regulation 74(5), as the regulation is primarily concerned with the process of dematerializing physical shares or rematerializing demat shares.

2. No Requests for Rematerialisation or Dematerialization:
   During the quarter ending 31st March 2025, no shareholder submitted any request to either rematerialize or dematerialize their holdings. This further solidifies the position that Regulation 74(5) does not apply, as the regulation primarily applies to transactions related to the conversion of shares between physical and electronic formats.

3. Certificate from Bigshare Services Pvt. Ltd.:
   The certificate received from Bigshare Services Pvt. Ltd., the company’s Registrar and Share Transfer Agent (RTA), confirmed the non-applicability of the regulation. This third-party confirmation adds an additional layer of transparency and verification to the claim made by the company.

Regulatory Background:

Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 (formerly Regulation 54 of SEBI's 1996 guidelines) is designed to ensure that companies with securities listed on the stock exchange properly manage their dematerialized shareholding records. The regulation mandates that listed companies must reconcile their records with the depositories to ensure there are no pending requests for the rematerialization or dematerialization of securities.

In cases where all shares are held in demat form and no requests for change in status have been made, companies are not required to file a certificate or submit a reconciliation under this regulation.

Aaron Industries’ Compliance:

Aaron Industries, a company committed to corporate governance and regulatory compliance, has adhered to these provisions by ensuring that all its shares are in electronic format and properly managed. The compliance certificate issued for Q4 FY2025 demonstrates the company’s dedication to legal transparency, shareholder communication, and maintaining compliance with the evolving regulations set forth by SEBI.

This non-applicability confirmation aligns with Aaron Industries' strong governance practices and helps maintain smooth operations, minimizing regulatory risks and enhancing trust with investors, regulatory bodies, and stakeholders.

Conclusion:

In conclusion, Aaron Industries Limited has successfully demonstrated that SEBI Regulation 74(5) does not apply for the quarter ending 31st March 2025 due to the complete dematerialization of the company’s shares. The company’s commitment to maintaining an entirely dematerialized shareholding system further strengthens its compliance record. The submission of the compliance certificate from Bigshare Services Pvt. Ltd. reinforces the company’s adherence to the SEBI (Depositories and Participants) Regulations, 2018, and provides full transparency regarding shareholder records.

This proactive approach ensures that Aaron Industries remains aligned with the regulatory framework and continues to maintain the trust of its stakeholders.

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