Daily Uopdates and News

SEBI

SEBI has notified the amended the Securities And Exchange Board Of India (Listing Obligations And Disclosure Requirements) (Second Amendment) Regulations, 2016 to introduce regulation relating to ‘Dividend Distribution Policy’. It requires that top 500 listed entities based on market capitalization (calculated as on March 31 of every FY) shall formulate Dividend Distribution Policy which shall be disclosed in Annual Reports and on websites. Such Policy shall prescribe following parameters: (i) Circumstances under which shareholders of listed entities may or may not expect dividend, (b) Financial parameters that shall be considered while declaring dividend, (c) Internal and external factors that shall be considered for declaration of dividend, (d) Policy as to how retained earnings shall be utilized; and (e) Parameters that shall be adopted with regard to various classes of shares. In case the listed entity proposes to declare dividend in addition to the prescribed parameters or proposes to change such parameters, then it shall disclose such changes along with its rationale in annual report and website. It further clarifies that listed entities, other than top 500 listed entities (based on market capitalization) may disclose their dividend distribution policies on voluntary basis in their annual reports/websites.

SEBI

SEBI has notified the Simplification of Account Opening Kit. Earlier, a Stock Broker/ Depository Participant, at the time of Opening the Account, was required to provide certain Standard Documents mandatorily to its clients. To simply the Account Opening process, SEBI vide the aforesaid Circular, now requires the Stock Broker/ Depository Participant to provide the Standard Documents to the clients either in electronic or physical form as per the preference of the client. The preference of the client shall be sought as part of the account opening form. The stock broker/ depository participant are directed to maintain logs of the documents made available in electronic form. The Circular further emphasized that stock exchanges/ depositories / stock brokers/ depository participants shall have these documents on their website to keep the clients informed.  Necessary steps shall be taken to implement this circular and ensure its full compliance in respect of all new clients from August 01, 2016.


Thanks & Regards,
Meetesh Shiroya