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Payment of dividend/Interest rounded off to the nearest rupee

Jun 04, 1997
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Circulars

SECURITIES AND EXCHANGE BOARD OF INDIA

PRIMARY MARKET

14TH FLOOR, EARNEST HOUSE

NARIMAN POINT, MUMBAI-400 021

Tel: 2850441-2850450

Fax:2870746

RRTI CIRCULAR NO.2 (97-98) June 4, 1997

 

 

 

TO ALL REGISTERED REGISTRAR TO AN ISSUE AND/OR SHARE TRANSFER AGENTS 

 

Dear Sirs.

 

Sub: Payment of dividend/Interest rounded off to the nearest rupee

 

Instances have come to SEBI's notice that payment of dividend to the shareholders and interest to the debentureholders by companies involving fraction of rupee is not rounded off to the nearest rupee.

 

This is a contravention of a directive of the Central Government issued in a Press Note 5/94, dated 27/7/94 by the Department of Company Affairs which stipulates that payment of dividend to the shareholders and interest to the debentureholders involving fraction of fifty paisa and above be rounded off to the rupee and the fraction of less than fifty paisa may he ignored.

 

The said directive of the Central Government must be complied.

Yours faithfully,

A. SATYANARAYANA

DIVISION CHIEF