Markets regulator Sebi on Friday proposed that listed entities should make all payments, such as dividends, interests and redemptions, through electronic mode only. The proposal is aimed at streamlining payment processes and enhance security,

Failures in electronic payments occur where a security holder of a listed company does not have a bank account in the records of the company or the bank details provided are incorrect or unavailable,

Regulation 12 of SEBI LODR Regulation, 2015 deals with payment of dividend or interest or redemption or repayment and the same reads as follows: “The listed entity shall use any of the electronic mode of payment facility approved by the Reserve Bank of India, in the manner specified in Schedule I, for the payment of the following:

Markets regulator Sebi on Friday proposed that listed entities should make all payments, such as dividends, interests and redemptions, through electronic mode only.

Sebi suggests that all listed entities make payments electronically to improve efficiency and security for investors, reducing cheque reliance.

Sebi proposes making all dividend, interest, and redemption payments electronic to enhance security, convenience, and efficiency for investors. Public comments are invited until October 11.