To widen the participation of shareholders in company decisions, the Securities and Exchange Board of India (Sebi) yesterday asked top 500 listed firms to provide e-voting facility to their shareholders from October onwards.
The regulator said it had been the endeavour of the government to provide wider participation of shareholders in decisions of companies through electronic voting (e-voting) process.
Former finance minister Pranab Mukherjee, in his Budget for 2012-13, had also advocated for e-voting facilities, besides existing process for shareholder voting.
Sebi said in order to widen the participation in important proposals it had been decided to ‘mandate’ the listed companies to enable the e-voting facility also to their shareholders, in respect of those businesses which are transacted through postal ballot of listed companies.
“To begin with, this requirement shall be applicable to top 500 listed entities at BSE and NSE, chosen based on the market capitalisation computed as on the date (today),” the market regulator said in a circular.
Sebi’s decision is applicable for the shareholders’ meetings, for which notices are issued from October 1.
However, the listed companies are at liberty to provide the e-voting facility to their shareholders at earlier dates also.
Sebi further said the concerned listed companies should choose any one of the agencies, which are currently providing the e-voting platform for this purpose.
At present, both the depositories — Central Depository Services (India) Ltd and National Securities Depository Ltd - are providing the e-voting platform. Currently listed companies conduct businesses by way of postal ballot. Sebi said a postal ballot also includes voting by electronic mode.
