India’s disclosure-based dividend regulations, introduced to enhance transparency, have sparked debate over their effectiveness. While aimed at improving corporate governance and investor confidence, critics argue these measures highlight deeper systemic issues like weak enforcement and superficial compliance. The reforms include raising the TDS threshold on dividends from INR 5,000 to INR 10,000, reducing compliance burdens for small investors. However, experts question whether these changes address the root causes of governance lapses or merely serve as symbolic gestures.
The broader implications for India’s capital markets hinge on whether these reforms can genuinely improve transparency or if they perpetuate tokenism. Investors and policymakers must evaluate whether these measures align with global best practices or require deeper structural changes.
Source: Evermore Insights