Market regulator, Securities and Exchange Board of India (SEBI) today decided to make it mandatory for top 500 listed companies, to facilitate e-voting, making it easier for shareholders to participate in key decisions without being physically present in the meetings.

The decision would be implemented in a phased manner, beginning with 'top 500 listed companies at BSE and NSE based on market capitalisation. Listed companies may choose any one of the agency which is currently providing the e-voting platform.

In order to enhance the quality of financial reporting done by listed entities SEBI would create Qualified Audit Report Review Committee (QARC) represented by ICAI and stock exchanges to guide SEBI in processing audit reports where auditors have given qualified audit reports.

The committee would also process qualified annual audit reports filed by the listed entities with stock exchanges and reports where accounting irregularities have been pointed out by Financial Reporting Review Board of the Institute of Chartered Accountants of India (ICAI-FRRB).

Cases wherein the qualifications are significant and explanation given by the company is unsatisfactory, would be referred to the ICAI-FRRB and If ICAI-FRRB opines that the qualification is justified, SEBI may mandate a restatement of the accounts of the entity and require the entity to inform the same to the shareholders by making the announcement to stock exchanges.

The regulator also relaxed norms for Offer For Sale (OFS) — a new route introduced by SEBI early this year to help companies increase their public shareholding. SEBI has allowed a minimum gap of two weeks between two OFS issuances.