The Securities Exchange Board of India (SEBI) on September 20, 2024, notified regarding the Proposed amendment to SEBI LODR Regulations, 2015 with respect to allowing only electronic mode for payment of dividend or interest or redemption or repayment amounts.
The following has been stated namely: -
• It states that listed entities shall use electronic payment methods approved by the Reserve Bank of India for dividends, interest, redemption, or repayment, as per Regulation 12 of SEBI LODR Regulation, 2015, with alternative 'payable-at-par' warrants only if electronic payment is impossible, and specific procedures for maintaining and using bank details for both dematerialized and physical securities holders.
• It is proposed to delete the following clauses from LODR Regulations, 2015:
o the provision allowing 'payable-at-par' warrants or cheques when electronic payment is not possible, including the requirement to send these by speed post for dividends over ₹1,500, and the conditions under Schedule I regarding issuing such warrants or cheques when bank details are unavailable or payment instructions fail, along with associated printing requirements for investor details.
The comments / suggestions along with rationale should be submitted no later than October 11, 2024, through the following link: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComm
