New Delhi. The capital market regulator has made it mandatory to form a dividend distribution policy for the top 1,000 listed companies. Following the meeting of its board of directors, Sebi said that this was currently an obligation for the top 500 listed companies, which has been increased to 1,000. It aims to strengthen corporate governance and disclosure standards.
Explaining the decisions taken in the Board of Directors, SEBI said that the companies would have to disclose the financial results within 30 minutes of the end of the board meeting on the day of declaration of the results. At the same time, the proposal related to the formation of Risk Management Committee (RMC) in companies has also been approved. Obligation on listed companies to change their names from stock exchanges has also been done away with.
In order to strengthen corporate governance in companies, SEBI has approved changes in several provisions of Listing Obligations and Disclosure Requirements Regulations (LODR). At the same time, companies will have to make the recording of their conversations with analysts via telephone or video after their financial results public within 24 hours.