Other issues that were taken up in the meeting included `at par' value of shares, marketing of primary market issue using stock exchanges' trading network and primary issue in the demat mode.

Many members of the committee felt the present entry norm which requires a track record of dividend payment of three out of the immediately preceding five years is coming in the way of some of the well capitalised companies which have ploughed back their profits but not declared dividend from entering the market.

``The Committee appreciating the concern decided to recommend to Sebi to change the criterion fromactual payment of dividend to the ability to pay the dividend worked out according to the conventional procedures prescribed in the provisions of the Companies Act, 1956,'' said a Sebi press release. According to section 205 of the Companies Act, a company can pay dividend out of its previous years' profits kept in reserves.

The committee has also initiated moves with Institute of Company Secretaries of India (ICSI) regarding non-compliance with listing requirements by companies. The committee has requested ICSI to evolve a procedure whereunder it would be obligatory for the company secretary to submit the information required under the listing agreement to the stock exchanges periodically. The representative of the ICSI has assured the committee to initiate necessary action.

Another decision taken by the committee was about ensuring disclosure of dividend per share rather than expressing it as a percentage to the par value.

The Committee also discussed the issue of listed companies changing names andrecommended that they be incorporated into prospectus. ``Members of the committee expressed concern regarding the recent trend observed in some of the listed companies to change their name. The Committee recommended that such change of names should be brought to the immediate attention of the regional stock exchanges.

Further, it has also recommended to Sebi to insist for complete disclosure about the change in name during the preceding three years as material disclosure in the offer document," said a Sebi press release. The committee headed by MS Verma has also recommended to Sebi to ask companies coming out with premium issues to disclose the fair value price of shares. ``In respect of premium issues, in addition to the present disclosure regarding justification for premium, the Committee felt that disclosure of fair price in accordance with the established valuation methodology would go a long way in assisting the investors in making more informed decisions.'' A small working group has been set up to gointo the modalities of using the the secondary market infrastructure for marketing of primary issues.