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Question
Answer in brief.
State any four points to be kept in mind by a Listed Company with respect to Dividend.
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Solution
When a company’s shares are listed in the Stock Exchange, the company has to follow additional requirements with respect to listings agreements. They are as follows:
- Notify the stock exchange where the company’s securities are listed at least 2 days in advance of the date of the Board meeting held to consider the recommendation of the final dividend.
- Intimate Stock Exchange immediately about the declaration of the dividend after the Board Meeting.
- Give notice of Book closure to the stock exchange at least 7 working days before the closure.
- Close the Register of members and the Transfer Register.
- It must use an electronic mode of payment such as Electronic Clearing Services (ECS) or National Electronic Fund Transfer (NEFT); as approved by the Reserve Bank of India (RBI).
- The listed company has to express the dividend on a per-share basis only.
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