Timely payment obligations for nonconvertible securities bar dividend distribution after interest or redemption default. Listed entities issuing non convertible debt securities or non convertible redeemable preference shares must ensure timely payment of interest, dividend and redemption amounts and are barred from declaring or distributing dividends where there is default in payment of interest on debt securities, redemption payments, or in creation of security. Redemption selection must be on a pro rata basis or by lot unless the issue terms provide otherwise, and entities must follow prescribed transfer and transmission procedures for securities.