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Jun 27, 2012, 09.51 AM IST
Market regulator Sebi today decided to make it mandatory for top 500 listed companies to facilitate e-voting, making it easier for shareholders to participate in key decisions without being physically present in the meetings.
"In line with the budget proposal...to make it mandatory for top-listed companies to provide for electronic voting facilities, it has been decided to implement the said proposal by making electronic voting mandatory...in respect of those businesses to be transacted through postal ballot," Sebi said in a statement after its board meeting here.
It said the decision would be implemented in a phased manner, beginning with "top 500 listed companies at BSE and NSE based on market capitalisation. Listed companies may choose any one of the agency which is currently providing the e-voting platform".
Besides, the Securities and Exchange Board of India (Sebi) said that in order to enhance the quality of financial reporting done by listed entities it would create a Qualified Audit Report review Committee (QARC) represented by accounting regulator ICAI and stock exchanges.
The committee would process qualified annual audit reports filed by the listed entities with stock exchanges and reports where accounting irregularities have been pointed out by Financial Reporting Review Board of the Institute of Chartered Accountants of India (ICAI-FRRB).
"Cases wherein the qualifications are significant and explanation given by company is unsatisfactory would be referred to the ICAI-FRRB.
"If ICAI-FRRB opines that the qualification is justified, SEBI may mandate a restatement of the accounts of the entity and require the entity to inform the same to the shareholders by making the announcement to stock exchanges," it said. Further, the regulator said it has modified the minimum subscription requirements for infrastructure companies coming out with IPOs.
"The minimum subscription shall not be less than 90% of the offer, subject to allotment of minimum 25% or 10%, as the case may be, of the securities offered to the public," Sebi said.
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