The mouse that had quietly entered the Mumbai bull-ring more than two decades ago has taken about a quarter of a century to put the paper scrip finally out of business.
About 2.3 per cent of India’s $2-trillionplus market capitalisation is still held in the form of physical stock even more than two decades after Mumbai exchanges went online. Holders of these shares in listed companies now face a December deadline to convert them into dematerialised form if they have to transfer or sell them.
The Listing Obligations and Disclosure Requirements (LODR), which the market regulator tweaked earlier this month, have made the conversion mandatory for all classes of investors. Many investors, especially senior citizens, still hold shares in physical form.