SEBI OKs proposal mandating payment of interest, dividend in electronic form
This story was originally published at 22:48 IST on 18 December 2024
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MUMBAI – The Securities and Exchange Board of India on Wednesday approved the proposal mandating any kind of payment, including dividend, interest, redemption, and repayment by listed entities to shareholders, in electronic form only.
"In case of returned dividend/interest/redemption, there will be an obligation on the company to inform the demat account holders by way of registered post as well as by email/sms to update their correct bank account details," the market regulator said after a board meeting.
"The companies and depositories shall engage in a sustained campaign to facilitate that investors populate their bank account details so as to receive their payments in electronic mode. The amendment will take effect from a date subsequent to such sustained campaign," SEBI said. End
Reported by Darshan Nakhwa
Edited by Deepshikha Bhardwaj
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