Analysis of Regulation 42 to 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) related to Record Date or Date of closure of transfer books, Dividends and Voting by shareholders.

REGULATION 42. RECORD DATE OR DATE OF CLOSURE OF TRANSFER BOOK:

Intimation of Record Date:

The listed entity shall intimate the record date to all the stock exchange(s) where it is listed for the following purposes:

  • Declaration of Dividend;
  • Issue of Right or Bonus Shares;
  • Issue of Shares for Conversion of Debentures or any other Convertible Security;
  • Shares Arising out of Rights attached to Debentures or any other Convertible Security
  • Corporate actions like Mergers, De-Mergers, Splits and Bonus Shares, where stock derivatives are available on the stock of listed entity or where listed entity’s stocks form part of an index on which derivatives are available;
  • Such other purposes as may be specified by the stock exchange(s).

Time Period for Intimation to Stock Exchange:

  • The listed entity shall give At least 7 working days advance Notice to Stock Exchange for the record date and specifying the purpose of record date.
  • 7 Working days excluding the date of intimation and the record date.

Time period for declaration of Dividend:

The listed entity shall recommend or declare all dividend and/or cash bonuses at least five working days (excluding the date of intimation and the record date) before the record date fixed for the purpose.

Time gap between TWO record Date:

At least 30 days time gap between TWO records Date.

Closure of Transfer books:       

The listed entity shall recommend or declare all dividend and/or cash bonuses at least five working days (excluding the date of intimation and the record date) before the record date fixed for the above mentioned purpose.

REGULATION 43. DIVIDEND:

Per Share Basis: The listed entity shall declare and disclose the dividend on per share basis only.

Forfeit Unclaimed Dividend:

The listed entity shall not forfeit unclaimed dividends before the claim becomes barred by law and such forfeiture, if effected, shall be annulled in appropriate cases.

REGULATION 44. VOTING BY SHAREHODLERS:

Remote E-Voting Facility:

The listed entity shall provide the facility of remote e-voting facility to its shareholders, in respect of all shareholders’ resolutions

Company Management and Administration Rules 2014:

The e-voting facility to be provided to shareholders shall be provided in compliance with the conditions specified under the Companies (Management and Administration) Rules, 2014, or amendments made thereto.

Intimation to Stock Exchange regarding result of General Meeting:

The listed entity shall submit to the stock exchange, within forty eight hours of conclusion of its General Meeting, details regarding the voting results in the format specified by the Board.

Intimation to Stock Exchange regarding result of General Meeting:

The listed entity shall submit to the stock exchange, within forty eight hours of conclusion of its General Meeting, details regarding the voting results in the format specified by the Board.

CS Divesh Goyal(Author – CS Divesh Goyal, ACS is a Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com)

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One response to “SEBI Listing Regulations: Record date/dividend/shareholding right”

  1. Abhishek says:

    Can record date be after 10 days of declaration of dividend at AGM ?

    For ex. AGM held on 01.07.2017
    Record date fixed: 10.07.2017

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