The Securities and Exchange Board of India on Thursday accepted the proposal of top 500 listed firms (market cap) to disclose their dividend distribution policy in their annual reports.
"The policy should include circumstances under which their shareholders can or cannot expect dividend, financial parameters and other factors for declaring dividends and how to utilise retained earnings, " the market regulator said in a statement after its board meeting here.
The board also directed the firms to disclose the basis of declaring dividend or change in distribution policy with the rationale.
"Disclosure of the policy will help investors in taking well informed investment decisions, " the statement added.
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