SEBI to make it mandatory for top 500 listed companies to provide e-voting

With Market regulator, Securities and Exchange Board of India (SEBI) decision to make it mandatory for the top 500 listed companies to provide e-voting, it will be easier for shareholders to participate in key decisions without being physically present at the meetings.

As per the SEBI:

• This step is along the lines of the budget proposal
• The decision would be put into practice in a phased manner, starting with top 500 listed companies at BSE and NSE based on market capitalization
• To enhance the quality of financial reporting by listed entities, it would set up a Qualified Audit Report Review Committee represented by accounting regulator, Institute of Chartered Accountants of India(ICAI) and stock exchanges
• The committee would go through qualified annual audit reports filed by the listed entities with stock exchanges, and reports where accounting irregularities have been pointed out by the Financial Reporting Review Board, FRRB, of the ICAI. Cases wherein the qualifications are important and the explanation given by the company is unjustified would be sent to the ICAI-FRRB.If the ICAI-FRRB suggests that the qualification is acceptable, SEBI may mandate a restatement of the accounts of the entity and require the entity to put it across to the shareholders by making the announcement to stock exchanges.

SEBI has changed the minimum subscription requirements for infrastructure companies coming out with IPOs. The minimum subscription shall not be less than 90% of the offer, conditional on allotment of minimum 25 %, or 10 %, as the case may be, of the securities offered to the public

Month: Current Affairs - June, 2012