The Securities and Exchange Board of India (SEBI) has announced some new rules aimed at strengthening the way the company operates and discloses information. The new rules say that the top 1,000 listed companies will inevitably have to make their own dividend distribution policy.
Investor meeting recordings should be available
The role of the Constitution and Risk Management Committee and the SEBI’s new policy to facilitate the re-classification of the promoter as a public shareholder. It asked to provide audio and video recordings of analyst and investor meetings on the company’s website.
SEBI changed the rules
This recording should be made available to the stock market within the next business day or 24 hours. It outlines the rules for professional responsibility and continuity reporting. SEBI has amended the necessary rules for listing and disclosure. These new rules went into effect on May 5th.
1000 top companies have to follow the rules
In a notification, SEBI said it was mandatory to make a dividend distribution policy for the top 1,000 companies listed in terms of market capitalization. This rule was previously applied to the top 500 companies.
The company can put a dividend distribution policy on its website
Sebi said other listed companies could put their profit-sharing policy on their website on a voluntary basis or provide a web-link in their annual report.
The risk management committee needs to be formed
In addition, it is imperative to create a risk management committee for the top 1,000 companies in terms of market capitalization from existing top 500 listed companies. The RMC has at least three members with at least one independent director and most of the members are on the board of directors. Many other similar changes were mentioned in the notification.
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