Shareholders get Online Control

     Print Edition: August 2012

The Securities and Exchange Board of India, or Sebi , has taken some vital steps to increase the say of shareholders in companies' decisions.

On 13 July 2012, the markets regulator asked top 500 listed companies to provide online web-based voting (e-voting) facility to their shareholders from October onwards.

"To begin with, this requirement shall be applicable to top 500 listed entities at the Bombay Stock Exchange and the National Stock Exchange , chosen based on market capitalisation computed as on 13 July 2012," the regulator said in a circular.

In another announcement, the regulator has made it easier for promoters of listed companies to dilute their stakes and comply with the minimum 25 per cent public holding norm by August 2013.

Institutional investors can apply for shares either with a 100 per cent margin or a smaller margin fixed by stock exchanges. An investor not paying 100 per cent margin cannot modify the bid amount. Till now, share sale could have been achieved through follow-on public offerings and institutional placement of stocks.

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