FINANCIAL INFORMATION AND TRANSPARENCY RELATED
DISCLOSURE FOR GOOD CORPORATE GOVERNANCE
1) Financial
Calendar
2) Listing
of Shares in Stock Exchange
3) Details
of Shareholders/ Shares
4) International
Listing
5) Stock
Market Data (Share Price Volatility)
6) Share
Transfer Process
7) Dividend
Payment
8) Special
Resolution by Postal Ballot
1) Financial
Calendar:
In
all the companies disclosure of financial calendar include following data:
•Financial
Calendar •Date, Time and Venue of Last Annual General Meeting •Book Closure
Date •Dividend Payment Date •Date of Posting of Annual Report •Last Date of
Receipt of Proxy forms •Approval Date of Quarterly Results •Stock Code •Special
Resolution of Postal Ballot •Reporting on Conciliation of Account GAAP •Board
Meeting Date •Probable Date of Dispatch of Warrants for Dividend
2) Listing of
Shares in Stock Exchange:
Listing
means admission of securities to dealings on a recognized stock exchange. The
securities may be of any public limited company, Central or State Government,
quasi-governmental and other financial institutions/corporations,
municipalities, etc.
The
objectives of listing are mainly to:
• Provide
liquidity to securities;
• Mobilize
savings for economic development;
• Protect
interest of investors by ensuring full disclosures.
3) Details of
Shareholders/ Shares:
Following
details of shareholders/shares are disclosed in sampled companies include:
• Name
of Investors/Shareholders
• Number
of shares and number of Shareholders
• Percentage
of total shares and total Shareholders
• Percentage
of Share Capital
• Amount
of Shareholding
• Shareholding
of Nominal Value
• Number
of Shares held in demat form
4) International
Listing:
GDR
(Global Depositary Receipt):
A
global depositary receipt (GDR) is a bank certificate issued in more than one
country for shares in a foreign company. The shares are held by a foreign
branch of an international bank. The shares trade as domestic shares, but are
offered for sale globally through the various bank branches.
A
financial instrument used by private markets to raise capital denominated in
either U.S. dollars or Euros.
ADR
(American Depositary Receipt):
An
American depositary receipt (ADR) is a negotiable certificate issued by a U.S.
bank representing a specified number of shares (or one share) in a foreign
stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars,
with the underlying security held by a U.S. financial institution overseas.
ADRs help to reduce administration and duty costs that would otherwise be
levied on each transaction. This is an excellent way to buy shares in a foreign
company while realizing any dividends and capital gains in U.S. dollars.
However, ADRs do not eliminate the currency and economic risks for the
underlying shares in another country. For example, dividend payments in Euros
would be converted to U.S. dollars, net of conversion expenses and foreign
taxes and in accordance with the deposit agreement. ADRs are listed on the
NYSE, AMEX or Nasdaq as well as OTC.
5) Stock Market
Data (Share Price Volatility):
Volatility
is a statistical measure of the dispersion of returns for a given security or
market index. Volatility can either be measured by using the standard deviation
or variance between returns from that same security or market index. Commonly,
the higher the volatility, the riskier the security. Stock price volatility is
an indicator that is most often used by options traders to find changes
in trends in the market place. There are two main
types of stock volatility including Historical Volatility and Implied
Volatility that are used in the options markets. The increase or
decrease in volatility results from changes in investors emotions in the market
place. More specifically greed and fear in the market place are the two main
factors that cause stock prices to change. Stock price volatility tends to rise
when there is new information released in the markets however the extent to
which it rises is determined by the relevance of that new information as well
as to the degree in which the news surprises investors.
6) Share Transfer
Process:
The
shares of a company are movable property and are generally freely transferable.
Though there might be certain restrictions on transfer of shares of private
companies provided in the articles of the company, such restrictions are
generally added to protect the rights of one set of investors or the
shareholders. However, shares of a public company are always freely
transferable. Here, researcher has taken 3 aspects of share transfer process
which are normally disclosed in sampled companies.
• Shares
in physical form
• Share
transfer is allotted agent
• Time
period for share transfer process
Power
of refusal to register transfer of shares is to be exercised by the company
within thirty (30) days from the date on which the instrument of transfer or
the intimation of transfer, as the case may be is delivered to the Company.
7) Dividend
Payment:
The
term ‘dividend’ has been defined under Section 2(35) of the Companies Act,
2013. The term “Dividend” includes any interim dividend. It is an inclusive and
not an exhaustive definition. According to the generally accepted definition,
“dividend” means the profit of a company, which is not retained in the business
and is distributed among the shareholders in proportion to the amount paid-up
on the shares held by them.
8) Special
Resolution by Postal Ballot:
Applicable
for E-Voting:
• Every
listed company or
• A
company having not less than one thousand shareholders shall provide to its
members facility to exercise their right to vote at general meetings by
electronic means.
• E-Voting
Period:
• The
e-voting shall remain open for not less than one day and not more than three
days.
• In
all such cases, such voting period shall be completed three days prior to the
date of the general meeting.
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