Dividends are a distribution of a company's profits to its shareholders. The concept originated in the 16th century when ship captains would sell financial claims in their voyages to investors. Under Indian law, the Companies Act of 2013 defines dividends and governs their declaration and payment for companies. It allows non-uniformly paid up shares to receive proportionate dividends. Companies with certain licenses cannot pay dividends and can only use profits for their objectives. Liquidation distributions are also not considered dividends. Listed companies must additionally follow securities regulations and disclosure requirements regarding dividends.