SEBI reduces time period for book closure
By Our Markets Bureau | 21 Nov 2003
Mumbai:
The Securities and Exchange Board of India (SEBI) has
reduced the time period for record date and book closure
with immediate effect following the representation received
from various sections of the securities market.
In a statement on Thursday, SEBI said the notice period had been reduced to 15 calendar days for demat scrips from the current 30 days; in the case of physical securities, the period had been reduced from 42 days to 21 days.
Book closure and record dates are mainly for various corporate actions, such as bonus and dividend, and these benefits were available to investors whose names appear in the company books on a particular day (that is, the record date).
The
statement said in view of major structural changes and
developments in the secondary markets, SEBI had decided
to reduce the notice period in phases to ensure that there
was minimum discomfort to market players. It also said
the market regulator would consider further reduction
in the notice period after seeking feedback from the market.
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