Mumbai, July 13: Market regulator Sebi has made it mandatory for the top 500 listed companies to have a "dividend distribution policy". To begin with, the top 500 companies in terms of market capitalisation (as on March 31 of every fiscal) will need to frame the dividend distribution policy. The companies need to disclose the policy in their annual reports and on their websites. In 2014, Sebi chief U.K. Sinha had said the regulator was planning to make it mandatory for the top 500 companies to have a dividend distribution policy. The decision follows investor groups' complaints about many companies refusing to distribute their extra profits among shareholders.

Source: The Telegraph July 13, 2016 21:10 UTC