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Now, Sebi mulls mandatory dividend policy for listed cos

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As a debate continues about IPO-bound airline IndiGo doling out hefty dividend payouts to promoters, market regulator, the Securities and Exchange Board of India, plans to make it mandatory for all listed companies to have ‘dividend policy.
The move is aimed at helping investors identify stocks with greater return potential, but the proposed policy would not mean forcing the companies to pay the dividend, a senior official said.
Rather, it would require listed companies as well as those looking to get listed through the initial public offering (IPO) route to spell out the circumstances under which their shareholders can or cannot expect a payout, he added.
InterGlobe Aviation, which runs low-cost air carrier IndiGo, has faced criticism in recent days upon disclosure in its IPO papers about a dividend payout to promoters, leading to a negative networth for the company.
A final decision may, however, take some time as Sebi is looking to first issue a consultation paper and the final policy would be framed after taking into account suggestions from all stakeholders.
Hindustan Times, New Delhi, 26th Oct. 2015

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