SEBI asks companies to declare dividend on per share basis
24 Apr 2009, 2133 hrs IST, PTI
MUMBAI: Clearing shareholders' confusion over returns they get from equities, market regulator SEBI on
Friday made it mandatory for companies to declare dividend on per share basis, besides prescribing a
uniform procedure for dealing with unclaimed shares.
\"It has been decided to mandate that listed companies shall declare their dividend on per share basis
only,\" SEBI said while issuing an amendment to the Equity Listing Agreement.
The step, the regulator said, is expected to bring uniformity in the manner of declaring dividend amongst
listed companies.
At present, a company can declare dividend as a percentage of face value of the share or in rupee per
share, independent of the face value.
\"SEBI's initiative clears the confusion of shareholders who get confused whether the dividend is a
percentage of face value or market price,\" Jagannadham Thunguntla, equity head of SMC Capital,
said.
To deal with the unclaimed shares, SEBI said, all companies will have to maintain a separate suspense
account for such shares and deposits, bonus shares etc into the account.
These initiatives come into force with immediate effect, SEBI said.
Thuguntula further said that the amendments introduced by SEBI in the Equity Listing Agreement would
ensure better corporate governance and help avoid misallocation of unclaimed shares.