The Securities and Exchange Board of India (SEBI) has amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, through the SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2016. The amendment has inserted regulation 43A, which states that the top 500 listed entities, based on market capitalization (calculated as on 31 March of every financial year), shall formulate a dividend distribution policy which they must disclose in their annual reports and on their websites.
Regulation 43A also lays down parameters that the top 500 entities must include in their dividend distribution policy. These are:
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