Consider e-message for refunds, share allotments: Sebi to firms

In a green initiative, markets regulator Sebi on Thursday asked companies to consider the electronic mode of communication for informing investors about refund orders, share allotments and other such messages.

As per present requirements, refund orders, allotment letters and share certificates are dispatched by way of registered post or certificate of posting.

At a board meeting in Mumbai on Thursday, the Securities and Exchange Board of India (Sebi) approved necessary changes in the Issue of Capital and Disclosure Requirements Regulations to allow such communications through electronic mode.

"As a green initiative, the board approved the proposal of inclusion of electronic mode as a valid method of communicating the allotment advice/credit of shares/unblocking of funds in addition to the present methods," Sebi said.

"This would be in tune with the digital initiatives of the government and would reduce printing costs for the issuer company leading to faster communication and ease of doing business," it said in a post-board meeting release.