SEBI to make it mandatory for top 500 listed companies for e-voting

Market regulator, SEBI today decided to make it mandatory for the top 500 listed companies to facilitate e-voting, making it easier for shareholders to participate in key decisions without being physically present at the meetings. SEBI's move is in line the budget proposal. SEBI said the decision would be implemented in a phased manner, beginning with top 500 listed companies at BSE and NSE based on market capitalisation.

The Securities and Exchange Board of India also said that in order to enhance the quality of financial reporting by listed entities, it would create a Qualified Audit Report review Committee represented by accounting regulator, Institute of Chartered Accountants of India, 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 the Financial Reporting Review Board, FRRB, of the ICAI. It said cases wherein the qualifications are significant and the explanation given by the company is unsatisfactory would be referred to the ICAI-FRRB. 

If the ICAI-FRRB opines that the qualification is justified, SEBI may mandate a restatement of the accounts of the entity and require the entity to convey this to the shareholders by making the announcement to stock exchanges.

Further, the capital market regulator said it has modified the minimum subscription requirements for infrastructure companies coming out with IPOs. It said the minimum subscription shall not be less than 90 per cent of the offer, subject to allotment of minimum 25 per cent, or 10 per cent, as the case may be, of the securities offered to the public.