As per SEBI mandate, all new IPOs are compulsorily traded in dematerialised form. The admission to a depository for dematerialisation of securities is a prerequisite for making a public or rights issue or an offer for sale. The investors would however, have the option of either subscribing to securities in physical form or dematerialised form. The Companies Act, 1956 requires that every public listed company making IPO of any security for Rs.10 crore or more shall issue the same only in dematerialised form.
