In the dynamic environment of India’s capital markets, regulatory compliance plays a vital role in ensuring transparency, investor trust, and market stability. One of the critical compliance requirements for all listed companies is Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, which governs the dematerialisation process for securities.

Switching Technologies Gunther Limited, a BSE-listed company with a long-standing presence in India’s technology and electronics sector, has demonstrated its commitment to good governance by submitting its quarterly compliance certificate for the quarter ended June 30, 2025.

This filing, dated July 5, 2025, confirms that the company has adhered to all necessary protocols for dematerialising physical share certificates, thereby reinforcing its dedication to shareholder protection and regulatory transparency.

Understanding SEBI Regulation 74(5): Purpose and Requirements
Regulation 74(5) is designed to maintain the integrity and security of the dematerialisation process. Dematerialisation, the process of converting physical share certificates into electronic form, has revolutionised India’s securities markets by improving efficiency, security, and investor convenience.

SEBI mandates that whenever a company receives securities for dematerialisation through its Registrar and Share Transfer Agent (RTA), the following steps must be completed within 15 days:

• Verification of the dematerialisation request and the authenticity of the physical share certificates.

• Mutilation and cancellation of the physical certificates to prevent their misuse or fraudulent reissuance.

• Updating the Register of Members to substitute the depository (NSDL/CDSL) as the registered owner.

• Communicating the acceptance or rejection of the request to the depository participant promptly.

By enforcing these steps, SEBI aims to protect investors, avoid duplication of share certificates, and maintain accurate records of share ownership.

Switching Technologies Gunther Limited’s Compliance Filing
On July 5, 2025, Switching Technologies Gunther Limited submitted its Regulation 74(5) certificate to the BSE Limited through the online listing centre. The company’s communication, signed by S. Ramesh, Company Secretary and Compliance Officer, confirms that the certificate was received from their Registrar and Share Transfer Agent, Cameo Corporate Services Limited, Chennai.

This certificate confirms that:

• All securities received from depository participants for dematerialisation during the quarter ending June 30, 2025 were duly processed.

• Verification was carried out to ensure the authenticity of the certificates.

• Physical certificates were mutilated and cancelled after verification.

• The names of the depositories (NSDL and CDSL) were duly substituted as the registered owners in the company’s Register of Members within the stipulated 15 days.

Such filings reinforce the company’s commitment to compliance and good corporate governance.

Role of Cameo Corporate Services Limited
Cameo Corporate Services Limited is the designated Registrar and Share Transfer Agent (RTA) for Switching Technologies Gunther Limited. RTAs are crucial stakeholders in India’s dematerialisation ecosystem, acting as intermediaries between companies, depositories, and investors.

Their responsibilities include:

• Receiving dematerialisation requests from depository participants.

• Verifying the authenticity and completeness of Dematerialisation Request Forms (DRFs) and physical share certificates.

• Communicating acceptance or rejection to the depositories.

• Cancelling and destroying the physical certificates after due verification.

• Updating the Register of Members with the details of the depositories.

By issuing this certificate of compliance, Cameo Corporate Services Limited assures regulators, exchanges, and investors that Switching Technologies Gunther Limited has fully adhered to SEBI’s requirements for the quarter.

Importance of Compliance with Regulation 74(5)
Maintaining compliance with Regulation 74(5) is not just a legal obligation but also a cornerstone of investor protection. Some of the key benefits of compliance include:

• Prevention of Fraud: Eliminates the risk of duplicate share certificates entering circulation.

• Investor Confidence: Builds trust among shareholders by ensuring their ownership records are secure and tamper-proof.

• Regulatory Transparency: Meets SEBI’s stringent reporting standards, thereby avoiding penalties and reputational damage.

• Market Integrity: Contributes to the smooth functioning of India’s electronic securities markets.

For investors, such disclosures are reassuring as they confirm that the company maintains robust internal controls over its shareholder records.

Switching Technologies Gunther Limited’s Broader Governance Framework
While the Regulation 74(5) filing is a specific compliance requirement, it reflects the company’s overall culture of governance and transparency. Switching Technologies Gunther Limited:

• Holds regular Board meetings with oversight committees.

• Conducts Annual General Meetings (AGMs) as per the Companies Act, 2013.

• Ensures timely financial disclosures to stock exchanges.

• Maintains an independent audit framework with statutory, secretarial, and cost auditors.

• Adopts best practices for investor relations and grievance redressal.

Such governance practices are crucial for maintaining market credibility and shareholder value.

Investor Communication with Stock Exchanges
Stock exchanges like BSE Limited require companies to disclose material compliance events in a timely manner. This ensures equal access to information for all stakeholders and strengthens market fairness.

By submitting its Regulation 74(5) certificate through the BSE Listing Centre Online, Switching Technologies Gunther Limited confirms its adherence to:

• SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR).

• Depositories and Participants Regulations, 2018.

• Stock exchange listing agreements that mandate transparency and disclosure.

Such communication is critical for investors who rely on accurate, timely information to make informed decisions in the capital markets.

Conclusion
Switching Technologies Gunther Limited’s Regulation 74(5) compliance filing for the June 2025 quarter demonstrates its steadfast commitment to regulatory integrity, investor protection, and corporate transparency.

By ensuring the proper verification, cancellation, and record updating of dematerialised securities, the company safeguards shareholder interests and supports the broader goal of maintaining trustworthy, efficient capital markets in India.

This filing is not just a procedural formality, but an important signal to investors that Switching Technologies Gunther Limited is committed to best practices in corporate governance—a commitment that ultimately drives long-term value creation for its shareholders.

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