The Companies Act, 1956
206. Dividend not to be paid except to registered shareholders or to their order or to their bankers.
(1) No dividend shall be paid by a company in respect of any share therein, except
(a)to the registered holder of such share or to his order or to his bankers; or
(b)in case a share warrant has been issued in respect of the share in pursuance of section 114, to the bearer of such warrant or to his bankers.
(2) Nothing contained in sub-section (1) shall be deemed to require the bankers of a registered shareholder to make a separate application to the company for the payment of the dividend.