The Securities and Exchange Board of India (SEBI) has made it mandatory for companies to declare dividend on per share basis. The market regulator also  prescribed a uniform procedure for dealing with unclaimed shares.

The move, part of the amendments to the equity listing agreement, is expected to clarify the exact returns shareholders get from equities, SEBI said in a release.

The amendments to the listing agreement are intended to enhance disclosures regarding shareholding pattern in a listed company and also to bring more transparency and efficiency in the governance of a listed company, SEBI said in the release.

"It has been decided to mandate that listed companies shall declare their dividend on per share basis only," SEBI said while issuing an amendment. The step is expected to bring uniformity in the manner of declaring dividend amongst listed companies, it added.

Companies now declare dividend as a percentage of face value of the share or in rupee per share, independent of the face value.

''It has been brought to the notice of the board that there is a large quantum of shares issued pursuant to the public issues, which remain unclaimed despite the best efforts of the registrar to issue or issuers,'' it said, adding, there is no uniform practice for dealing with such shares.

''It has been decided to provide a uniform procedure for dealing with unclaimed shares, ie, shares which could not be allotted to the rightful shareholder due to insufficient/incorrect information or any other reason,'' it said.

SEBI has asked companies to maintain a separate suspense account for unclaimed shares and deposits, bonus shares etc.

Accordingly, the new Clause 5A is to be inserted, which, inter alia, provides the following:

(a) The unclaimed shares shall be credited to a demat suspense account opened by the issuer with one of the depository participants.

(b) Any corporate benefit in terms of securities, accruing on unclaimed shares such as bonus shares, split etc, shall also be credited to such account.

(c) Details of shareholding of each individual allottee whose shares have been credited to such suspense account shall be properly maintained by the issuer.

(d) The allottee's account shall be credited as and when he/she approaches the issuer, after undertaking the proper verification of identity of the allottee.

(e) The voting rights of these shares will remain frozen till the rightful owner
claims the shares.

(f) Details (in aggregate) of shares in the suspense account including freeze on their voting rights, shall be disclosed in the annual report as long as there are shares in the suspense account.

SEBI also reduced the timelines for notice period for all corporate actions like dividend, bonus etc, for all scripts whether in demat or physical, whether in F&O segment or not. The notice period for record date has been reduced to 7 working days and for board meeting has been reduced to 2 working days.

These initiatives come into force with immediate effect, SEBI said.

SEBI has advised all stock exchanges to give effect to the amended policy and appropriately amend the relevant clauses of the Equity Listing Agreement accordingly.