The Securities and Exchange Board of India, amid concerns over companies refusing to share extra profit with investors, readied a new regulation mandating listed firms to put in place a ‘dividend distribution policy.’

This new regulatory framework will be applicable to the top 500 listed companies initially based on their market valuation and would be later expanded to others.

According to a senior official a proposal in this regard would be presented before the Sebi’s board net month, after that necessary amendments can be made to the Listing Obligations and Disclosure Requirements (LODR) Regulations.

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