Is it possible for a private limited company shareholders hold their shares in demat format ?
As far as I know this is not possible.
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It is possible to hold these shares in demat form but not mandatory like public company. Check these links for further details
http://www.cdslindia.com/downloads/faq/05.demat%20cdsl%20way%20-%20v%20-%20dematerialization.pdf
http://www.caclubindia.com/forum/demat-of-shares-192869.asp#.U-HT0_mSxR8
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Thanks for the clarification Ajay.
You are welcome Karthik.