Market Regulator Sebi has notified about Dividend Distribution policy to be extended to 1000 listed Companies from 500 Companies. The regulator has also asked listed firms to  make available audio and video recordings of analyst and investor meets on their websites as well as stock exchanges within 24 hours or before the next trading day and also notified rules regarding Business Responsibility and Sustainability Report (BSSR). The other listed entities can disclose their dividend distribution policies on a voluntary basis on their websites and provide a web-link in their annual reports.  SEBI has asked the listed companies that if  board meetings held for more than a day,  the financial results should be disclosed by listed entities within 30 minutes of end of the board meeting for the day. Also the requirement to publish newspaper advertisements for the notice to board meetings where financial results are to be discussed and for quarterly statement on deviation or variation in use of funds, has been dispensed with. To strengthen the corporate governance practices, Sebi board approved several amendments to the LODR (Listing Obligations and Disclosure Requirements) Regulations and these amendments are aimed at ensuring gender neutrality and maintaining consistency within the LODR Regulations, harmonising certain provisions of the LODR Regulations with Companies Act, in addition to strengthening the corporate governance practices and disclosure requirements and easing the compliance burden on listed entities as per SEBI.

Parameters for 1000 listed Companies to pay out dividends -

The dividend pay-out decision of the Board depends upon the following financial parameters, internal and external factors:

Internal Factors: a) Operating cash flow of the Company b) Profit earned during the year c) Profit available for distribution d) Earnings per Share (“EPS”) e) Working capital requirements f) Capital expenditure requirements g) Business expansion and growth h) Likelihood of crystallization of contingent liabilities, if any i) Additional investment in subsidiaries and associates of the Company j) Upgrading technology and physical infrastructure k) Creation of a contingency fund to deal with any matter of emergency as approved by the Board l) Acquisition of businesses or suitable investments m) Cost of Borrowings n) Past dividend pay-out ratio / trends.

External Factors: a) Economic environment b) Government regulations c) Capital markets d) Global conditions e) Statutory provisions and guidelines f) Dividend pay-out ratio of competitors with similar revenue

RISK MANAGEMENT COMMITTEE

The requirement to constitute the RMC has been extended to the top-1,000 listed entities by market capitalisation from the existing top-500 listed entities.The RMC should have minimum three members with majority of them being members of the board of directors, including at least one independent director.The quorum for a meeting of the RMC should be either two members or one third of the members of the committee, whichever is higher, including at least one member of the board of directors in attendance and the gap between two meetings dhould not be more than 180 days.

Requirement of Transcript on the websites of Companies

SEBI has notified that written transcripts of post-earning conference need to be made available on websites of listed companies and respective stock exchanges within five working days after such calls.

This Policy will be modified in accordance with the guidelines / clarifications as may be issued from time to time by any relevant statutory and regulatory authority. The Board may modify, add, delete or amend any of the provisions of this Policy. Any exceptions to the Dividend Distribution Policy must be consistent with applicable regulations and must be approved in the manner decided by the Board of Directors of the Company.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) and Other Related Laws Being Force In India, For The Time Being. Further, despite allefforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to
human error or otherwise.