valid as on 20/07/2018

Regulation 12. Payment of dividend or interest or redemption or repayment.
Effective date 01.12.2015

Section 123 of The Companies Act, 2013

Payment of dividend or interest or redemption or repayment.

12. The of shall use any of the electronic mode of payment facility approved by the Reserve Bank of India, in the manner specified in , for the payment of the following:

(a)      dividends;
(b)      interest;
(c)      redemption or repayment amounts:

Provided that where it is not possible to use electronic mode of payment, ‘payable-at-par’ warrants or cheques may be issued:

Provided further that where the amount payable as dividend exceeds one thousand and five hundred rupees, the ‘payable-at-par’ warrants or cheques shall be sent by speed post.

Guidelines for Issuer Company with respect to Payment of Dividend/interest/redemption/redemption. To view the circular,Click Here Para II (12)(ii) of the circular dated 20.04.2018 is clarified vide Circular No. SEBI/HO/MIRSD/DOS3/CIR/P/2018/115 dated 16.07.2018. To view the circular,Click Here
To view the schedule,Click Here

Circular No.: SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated 20/04/2018- Strengthening the Guidelines and Raising Industry standards for RTA, Issuer Companies and Banker to an Issue


Clarification to circular no. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated 20.04.2018


LODR – SCHEDULE I

TERMS OF SECURITIES

The listed entity shall use the facility of electronic clearing services or real time gross settlement or national electronic funds transfer as follows:-

(1)     the listed entity either directly or through their Registrar to an Issue and/or Share Transfer Agent, shall use electronic clearing services (local, regional or national), direct credit, real time gross settlement, national electronic funds transfer etc for making payment of dividend/interest on securities issued/redemption or repayment amount.

(2)   the listed entity or Share Transfer Agent shall maintain bank details of their investors as follows –

(a)   for investors holding securities in dematerialized mode, by seeking the same from the depositories.

(b)   for investors holding securities in physical mode, by updating bank details of the investors at their end.

(3)   In cases where either the bank details such as Magnetic Ink Character Recognition, Indian Financial System Code, etc. that are required for making electronic payment are not available or the electronic payment instructions have failed or have been rejected by the bank, listed entity or share transfer agent shall issue ‘payable-at-par’ warrants/ cheques for making payments:

Provided that the listed entity shall mandatorily print the bank account details of the investors on such payment instruments and in cases where the bank details of investors are not available, the listed entity shall mandatorily print the address of the investor on such payment instructions.

Inserted vide  the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2018 dated 30.05.2018. To view the Notification, Click Here

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