The Securities and Exchange Board of India ( Sebi) might compel disclosure of a companys dividend policy in an initial public offering ( IPO) prospectus. “Companies could be asked to state their dividend policy upfront in the draft prospectus. This would provide clarity on the company’s philosophy, in terms of repaying shareholders,” said a source. Another source adds that the entire InterGlobe Aviation episode has not escaped regulator attention and Sebi’s move appears to be a result of this. The airline operator paid a heavy dividend to its promoters just ahead of its IPO, rendering its net worth negative. The move had drawn criticism from analysts. Currently, the regulator is engaged in discussion with market participants on proposed dividend disclosure norms and the format. Before forming any regulation, Sebi will issue a discussion paper. Surces add that Sebi could ask companies to declare a minimum dividend payment as a percentage of its earnings. “A shareholder h