The Security and Exchange board of India (SEBI) has issued the procedure for e-Voting Facility Provided by Listed Entities.
As per Regulation 44 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, listed entities are required to provide remote e-voting facility to its shareholders, in respect of all shareholders’ resolutions.
However, it has been observed that the participation by the public non-institutional shareholders or retail shareholders is at a negligible level.
The SEBI in order to increase the efficiency of the voting process, pursuant to a public consultation, decided to enable e-voting to all the Demat account holders, by way of a single login credential, through their Demat accounts/ websites of Depositories/ Depository Participants.
“Demat account holders would be able to cast their vote without having to register again with the ESPs, thereby, not only facilitating seamless authentication but also enhancing ease and convenience of participating in e-voting process,” the SEBI said.
The process for e-voting shall be implemented within 6 months of the date of the circular and shall be implemented in a phased manner.
The Phase 1 shall include Direct registration with Depositories and through Demat Accounts with Depository Participants.
The authentication of shareholders would happen at the depository level and ESPs shall allow the demat account holders to cast their vote based on the validation carried out by the Depository.
Depository shall send a confirmatory SMS to the shareholders that the vote has been cast based on the confirmation received from the ESP.
The listed entity shall provide the details of the upcoming AGMs requiring voting to the Depository. The depository shall send SMS/email alerts in this regard, to the Demat account holders, at least 2 days prior to the date of the commencement of e-voting.
In Phase 2 in order to further enhance the convenience and security of the e-voting system, the depository shall validate the Demat account holder through a One Time Password (OTP) verification process.
This facility will be available to all individual shareholders holding the securities in Demat mode.
ESPs may continue to provide the facility of e-voting as per the existing process to all physical shareholders and shareholders other than individuals viz. institutions/ corporate shareholders.
Depositories and Exchanges are advised to bring the circular to the notice of its Depository Participants and listed companies respectively.
All listed companies are advised to notify the above process available to Demat account holders for e-voting in the notice sent to the shareholders.
Subscribe Taxscan Premium to view the Judgment
