Sebi’s current LODR (Listing Obligations and Disclosure Requirements) rules allow electronic payments but allow cheques or guarantees if electronic transfers fail, especially for amounts above Rs 1,500.
Failures occur when a security holder bank The data is incorrect or unavailable, so businesses must send checks. According to recent data, 1.29 percent of electronic payments dividend Payments failed for the top 200 listed companies, Sebi said.
In its consultation paper, the Securities and Exchange Board of India (Sebi) has proposed making all payments, including dividends and interest, in electronic format for both physical and demat securities holders.
Investors would be encouraged to update their correct banking details with depository participants to ensure smooth payments.
Sebi has highlighted several benefits of electronic payments, such as they are faster and more convenient than cheques and reduce the risk The proposals reduce the risk of loss during transportation, are environment-friendly by reducing paper usage, reduce administrative costs for companies, make monitoring easier for investors and help minimise errors. The Securities and Exchange Board of India (Sebi) has invited public comments on the proposal till October 11.
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