December 09, 2020
Summary of the circular issued by SEBI on 09/12/2020
SEBI Issues circular to increase participation of non-institutional shareholders in e-Voting Facility Provided by Listed Entities
Pursuant to regulation 44 of SEBI (LODR) 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/retail shareholders is at a negligible level.
To facilitate the seamless authentication and to enhance ease and convenience of participating in the e-voting process, SEBI has come out with the following broad initiatives to be implemented in 2 Phases:
Phase 1 (to be implemented by 9 June, 2021) –
1. Enable e-voting for all demat account holders by way of a single login credential through their demat accounts
2. Direct registration with depositories and E-voting Service Provider (ESP) to enable authentication at depository level. This will increase the efficiency of the voting process more secure, convenient, and simple for shareholders.
Phase 2 (to be implemented within 12 months of completion of Phase 1)
1. To enhance the security of e-voting by enabling two-factor authentication such as Email or Mobile based OTP.
With this SEBI ultimately intends to eliminate the key challenge of registration on various ESPs and maintenance of multiple user IDs and passwords by the shareholders and eventually increase participation.
The detailed Circular is available for use on our free to use website www.ca2013.com for your quick reference.