Comment on the following: Every Company is required to issue securities in dematerialized form only.

The statement is **partially incorrect**. Provisions of the Companies Act, 2013: Section 29 of the Companies Act, 2013 mandates that every company making a public offer and such other class or classes of companies as may be prescribed, shall issue the securities only in dematerialized form by complying with the provisions of the Depositories Act, 1996 and the regulations made thereunder. Further, Section 29 read with Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014 also mandates that every unlisted public company shall issue the securities only in dematerialised form and also facilitate dematerialisation of all of its existing securities in accordance with the provisions of the Depositories Act, 1996 and regulations made thereunder. Exemptions: However, an unlisted public company which is a Nidhi Company, a Government Company or a wholly owned subsidiary company is exempted from the above requirement as specified in Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014. Any company, other than the companies mentioned above, may convert its securities into dematerialised form or issue its securities in physical form in accordance with the provisions of the Companies Act, 2013 or in dematerialised form in accordance with the provisions of the Depositories Act, 1996 and the regulations made thereunder. Conclusion: Therefore, it is not every company that is required to issue securities in dematerialized form only. The requirement applies to specific classes of companies as prescribed by law, while others have the option to issue securities in physical form.