Shiva Mills Limited, a prominent textile manufacturer based in Coimbatore, Tamil Nadu, has formally disclosed its compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 30th June 2025.

This mandatory filing underscores the company’s commitment to transparency, investor protection, and regulatory adherence, critical expectations for a publicly listed entity on the NSE (Symbol: SHIVAMILLS) and BSE (Code: 540961).

This article explains the regulation, the company's disclosure, the process of dematerialisation, and its implications for investors.

What is SEBI Regulation 74(5)?

Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 mandates that:

The issuer or its Registrar and Share Transfer Agent (RTA) shall ensure that securities dematerialised during the quarter have been mutilated and cancelled after due verification, and that the name of the depository is entered as the registered owner in the records of the issuer.

This regulation is vital for maintaining the integrity of India’s dematerialised securities system, reducing fraud risk, and ensuring accurate ownership records.

Shiva Mills Limited’s Filing

On 5th July 2025, Shiva Mills Limited submitted its formal communication (Ref: SML/SEC/SE/172/2025-26) to National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).

The letter, signed by M Shyamala, Company Secretary, states:

"We are enclosing herewith the certificate dated 4.7.2025 issued by our Registrar and Share Transfer Agent, M/s. MUFG Intime India Private Limited, confirming compliance under Regulation 74(5) for the quarter ended 30.6.2025."

Role of MUFG Intime India Private Limited

MUFG Intime India Private Limited (formerly Link Intime India Pvt. Ltd.) is Shiva Mills' Registrar and Share Transfer Agent (RTA). RTAs play a crucial role in managing the securities of listed companies, including:

• Processing dematerialisation requests.

• Verifying investor records.

• Maintaining the register of members.

• Ensuring statutory compliance.

The certificate they provided is evidence that Shiva Mills followed all required procedures for dematerialisation.

MUFG Intime’s Certification

The attached certificate from MUFG Intime India Private Limited, dated 4th July 2025, confirms the following:

• All securities received for dematerialisation during the quarter were processed (accepted or rejected) and reported to the depositories within prescribed timelines.

• The security certificates involved were mutilated and cancelled to prevent misuse.

• The name of the depository was substituted in the register of members as the registered owner, ensuring updated and accurate ownership records.

These steps ensure that physical share certificates are properly converted to electronic form, preventing duplicate trading and fraud.

Why Dematerialisation Matters

Dematerialisation is the process of converting physical share certificates into electronic form, stored in depositories like NSDL and CDSL.

Key benefits include:

• Eliminates risks of loss, theft, and forgery.

• Simplifies trading and settlement processes.

• Reduces paperwork and transaction costs.

• Ensures transparency and accuracy in ownership records.

Regulation 74(5) ensures that companies maintain discipline and integrity in this process, protecting investor interests.

Regulatory Context

SEBI, India’s capital markets regulator, has made dematerialisation mandatory for listed securities to improve market infrastructure.

Regulation 74(5) is part of the Depositories and Participants Regulations, 2018, which governs:

• The role of depositories (NSDL, CDSL).

• Obligations of issuers and RTAs.

• Processes for dematerialisation and rematerialisation.

Failure to comply can result in:

• Regulatory penalties.

• Damage to investor trust.

• Possible trading suspensions.

By filing this certificate, Shiva Mills Limited demonstrates full compliance, ensuring continued investor confidence.

Shiva Mills Limited: Company Profile

Shiva Mills Limited is a textile company headquartered in Coimbatore, Tamil Nadu.

Key details:

• Registered Office: 249-A, Bye-Pass Road, Mettupalayam Road, Coimbatore – 641 043, Tamil Nadu, India.

• CIN: L17111TZ2015PLC022007

• GSTRN: 33AAXCS5170R1ZC

• Contact: shares@shivamills.com

• Website: www.shivamills.com

The company manufactures and exports high-quality yarn and textiles, with a strong presence in both domestic and international markets.

Role of Registrar and Share Transfer Agent (RTA)

MUFG Intime India Private Limited (formerly Link Intime India) serves as Shiva Mills’ RTA.

Their responsibilities include:

• Receiving dematerialisation requests from Depository Participants (DPs).

• Verifying and confirming/rejecting requests.

• Mutilating and cancelling physical certificates after due verification.

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

Their confirmation is a statutory requirement under Regulation 74(5).

Importance of This Disclosure for Investors

For investors, this announcement is a key signal of:

• Regulatory compliance: Assurance that Shiva Mills follows SEBI guidelines.

• Operational integrity: Confidence in the company's record-keeping.

• Risk mitigation: Reduced chances of fraud or duplication of shares.

By regularly filing these certificates, Shiva Mills demonstrates its commitment to transparency and good corporate governance.

SEBI’s Regulatory Focus

SEBI’s push for dematerialisation aligns with broader goals:

• Digitisation of markets.

• Enhancing investor protection.

• Increasing efficiency and transparency in settlement systems.

Through regulations like 74(5), SEBI ensures companies maintain high standards in their interactions with depositories and investors.

Investor Action Points

Shareholders of Shiva Mills Limited may consider:

• Reviewing their demat account statements to confirm accurate holdings.

• Ensuring that all their physical shares have been dematerialised.

• Staying updated with company filings on NSE and BSE.

Dematerialisation also enables easier participation in corporate actions like dividends, rights issues, and buybacks.

Regulatory Communication Trail

The announcement included formal letters to:

• National Securities Depository Limited (NSDL)

• Central Depository Services (India) Limited (CDSL)

• National Stock Exchange of India Limited (NSE)

• BSE Limited

This ensures all stakeholders are notified, enhancing market-wide transparency.

Conclusion

Shiva Mills Limited’s submission of its Regulation 74(5) compliance certificate for the quarter ended 30th June 2025 reinforces its commitment to good governance and investor confidence.

By partnering with a reputable RTA like MUFG Intime India Private Limited, the company ensures that its securities dematerialisation process remains efficient, secure, and fully compliant with SEBI requirements.

Investors can take comfort in knowing their holdings are safely dematerialised and that Shiva Mills remains diligent in meeting regulatory obligations, laying the foundation for sustained market trust and long-term growth.

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