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The Securities Exchange Board of India (Sebi) has recently approved the proposal of inclusion of electronic mode as a valid method of communication to the shareholders to encourage the e-green initiative and digital initiatives. It is indeed a welcome step and would largely cut down expenses and lead to faster communication.
Further, Sebi has also taken initiative in respect of payment of credit to the shareholders through electronic mode which facilitates instantaneous credit to the bank account of the shareholders. Shareholders by and large have opted for this which has drastically cut down the time taken for credit through physical mode. Still there are a large number of shareholders who have not opted for receiving dividend through electronic mode.
Payment of dividend to the shareholders by warrants and pay orders is still being continued and Sebi has not made it mandatory to receive the dividend by the shareholders through electronic mode. It is now high time that Sebi makes it mandatory to receive the dividend only through electronic mode and do away with physical segment as far as payment of dividend is concerned. Needless to add, this would reduce time and administrative work.
K R Ramachandran, Mumbai
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