Understanding SEBI Regulation 74(5)
Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, is a cornerstone of India’s dematerialisation framework.

Under this rule, every issuer or its Registrar and Share Transfer Agent (RTA) must ensure that:

• Securities submitted for dematerialisation have been properly verified.

• Physical certificates are mutilated and cancelled after verification to prevent fraudulent reuse.

• The register of members is updated to record the depositories (NSDL and CDSL) as the registered owners within the prescribed timelines.

This process is designed to guarantee accuracy, security, and integrity in India’s electronic securities ecosystem.

Hindustan Appliances Limited’s Official Filing
On 5th July 2025, Hindustan Appliances Limited formally submitted a letter to the Corporate Relationship Department of BSE, confirming its compliance.

Key details from the letter include:

• Date: 5th July 2025

• Subject: Certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.

• BSE Scrip Code: 531918

• Signed by: Kalpesh Rameshchandra Shah, Managing Director (DIN: 00294115).

• Enclosure: Confirmation certificate from Purva Sharegistry (India) Pvt. Ltd., the company’s Registrar and Share Transfer Agent (RTA).

The letter formally places on record that Hindustan Appliances has fulfilled its quarterly SEBI compliance requirement for the period from 1st April 2025 to 30th June 2025.

Role of the Registrar and Share Transfer Agent (RTA)
Hindustan Appliances Limited’s appointed RTA is Purva Sharegistry (India) Pvt. Ltd., a SEBI-registered entity responsible for handling share registry operations.

Core RTA responsibilities include:

• Receiving Dematerialisation Request Forms (DRFs) from depository participants.

• Verifying the authenticity of physical share certificates.

• Ensuring that accepted physical certificates are mutilated and cancelled to prevent fraudulent reuse.

• Updating the register of members to reflect NSDL and CDSL as the registered owners.

• Certifying these processes to the stock exchange each quarter.

This regulatory requirement ensures transparent, auditable, and secure handling of shareholder assets.

Content of the RTA’s Certificate
The enclosed confirmation from Purva Sharegistry (India) Pvt. Ltd. is dated 01 July 2025 and signed by Ms. Deepali Dhuri, Compliance Officer.

Key confirmations in the certificate:

• All securities received for dematerialisation during the April–June 2025 quarter were accepted or rejected after due verification.

• The physical share certificates were mutilated and cancelled to eliminate any risk of fraudulent reuse.

• The register of members was updated with NSDL and CDSL as the registered owners within the SEBI-prescribed timelines.

• All details of such dematerialisation activities were shared with the stock exchange for complete transparency.

This formal certification is essential to protect investors and ensure market integrity.

Details of Actual Dematerialisation Activity
Unlike a NIL certificate (which indicates no activity), Hindustan Appliances Limited’s report includes actual dematerialisation details.

Share certificates dematerialised from 01 April 2025 to 30 June 2025:

• Folio: 005511

  • Name of Shareholder: Ketul Mahendra Doshi

  • Certificate No.: 0100414

  • Dist. No. (From): 871701

  • Dist. No. (To): 872700

  • Shares Dematerialised: 1000

  • Date of Demat: 08/04/2025

• Folio: 007124

  • Name of Shareholder: Jyotika A. Desai

  • Certificate No.: 0101537

  • Dist. No. (From): 9100601

  • Dist. No. (To): 9100900

  • Shares Dematerialised: 300

  • Date of Demat: 14/05/2025

This demonstrates real shareholder demat activity, confirming the RTA’s role in securely transitioning physical certificates to electronic form.

Importance of Dematerialisation
Dematerialisation converts physical share certificates into electronic holdings maintained in a demat account with NSDL or CDSL.

Key benefits:

• Eliminates loss, theft, and forgery risks associated with physical certificates.

• Supports fast, efficient, and secure settlement of trades.

• Reduces paperwork and administrative hassle.

• Enhances transparency in ownership records.

• Strengthens investor confidence in the system.

SEBI’s Regulatory Intent Behind 74(5)
Regulation 74(5) is designed to enforce rigorous oversight over dematerialisation.

Main goals:

• Ensure only genuine, verified securities enter the demat system.

• Prevent fraudulent use of duplicate or fake certificates.

• Maintain accurate ownership records at the company, depositories, and stock exchanges.

• Build investor trust through regular certification and auditability.

Quarterly filings like this are essential to India’s robust, regulated capital market.

Company’s Transparent Disclosure
Hindustan Appliances Limited’s letter to BSE includes:

• Official letterhead with CIN: L18101MH1984PLC034857.

• Registered office address in Lower Parel, Mumbai.

• Contact email and phone number.

• Explicit mention of SEBI Regulation 74(5) for April–June 2025.

• Signature of Managing Director with DIN.

• Enclosure of Purva Sharegistry’s certificate, confirming compliance.

Such communication provides complete transparency to shareholders and regulators.

Purva Sharegistry (India) Pvt. Ltd.’s Role as RTA
As the RTA, Purva Sharegistry (India) Pvt. Ltd. executed and certified the dematerialisation process for Hindustan Appliances Limited.

Their responsibilities include:

• Receiving and verifying DRFs from NSDL/CDSL participants.

• Confirming or rejecting requests based on verification.

• Mutilating and cancelling physical certificates to prevent any reuse.

• Updating the company’s register of members to reflect depositories as owners.

• Submitting a quarterly certificate to BSE as proof of compliance.

Investor Protection Through SEBI Compliance
For shareholders, this filing confirms that Hindustan Appliances Limited:

• Maintains secure and verified dematerialisation procedures.

• Ensures no possibility of duplicate or fraudulent certificates.

• Keeps accurate, up-to-date ownership records.

• Fully complies with SEBI’s strict regulatory framework.

This level of compliance protects investor interests and builds market confidence.

Stock Exchange’s Role in Enforcing Compliance
BSE ensures:

• All listed companies submit 74(5) certificates quarterly.

• Records are publicly accessible to investors and analysts.

• Uniform disclosure standards across companies.

Such oversight helps maintain a safe and trusted trading environment.

Conclusion
By submitting its SEBI Regulation 74(5) Certificate for the June 2025 quarter, Hindustan Appliances Limited proves its commitment to investor protection, corporate governance, and regulatory transparency.

The certificate from Purva Sharegistry (India) Pvt. Ltd. confirms that all dematerialisation activities were properly verified, physical certificates were securely destroyed, and ownership records were updated in line with SEBI’s requirements.

Such diligent compliance ensures that India’s capital markets remain secure, efficient, and investor-friendly, reinforcing the credibility of Hindustan Appliances Limited as a trusted, compliant listed company.

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