Section 123 of The Companies Act, 2013
Payment of dividend or interest or redemption or repayment.
(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.
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.