Sebi said the amendment will come into force with immediate effect. The amendment inserts the clause: 'The company agrees that it shall not issue shares in any manner which may confer on any person, superior rights as to voting or dividend vis-a-vis the rights on equity shares that are already listed'.
The Securities and Exchange Board of India (Sebi) has amended the equity listing agreement, asking companies to set up an agency to monitor the utilisation of issue proceeds.
Under Clause 49, independent directors are required to have at least 50 per cent representation on the board of directors of listed entities, including listed Central Public Sector Enterprises, in case the chairman is an executive member, or at least one-third in case the chairman is non-executive.
The step, the regulator said, is expected to bring uniformity in the manner of declaring dividend amongst listed companies. At present, a company can declare dividend as a percentage of face value of the share or in rupee per share, independent of the face value.
Sebi has allowed listed companies to send only salient features of the balance sheet to their shareholders instead of the complete report.
Gearing up to ensure greater compliance by companies to listing agreement, NSE is planning to increase its headcount to bring in more efficacy in its oversight role as a front-line regulator of the securities market.
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