The Reliance-owned BSES will be the first company in India to declare dividends on a quarterly basis.

The BSES board on Monday approved in principle to declare quarterly dividends and will meet on August 5 to consider the quantum of dividend for the first quarter of 2003-04.

"This initiative will benefit the 120,000 shareholders of the company and enhance the overall shareholder value," the company said in a media statement.

Under the guidelines issued by the Securities and Exchange Board of India, notices have to be sent to the stock exchanges seven days in advance to convene a board meeting to discuss dividend-related issues. Declaring quarterly results became mandatory a few years ago.

"The BSES board is meeting on August 5 to decide on the payout," sources close to the development said.

The BSES stock, which closed on Friday at Rs 286.30 on the Bombay Stock Exchange, touched an intra-day high of Rs 295.40 Monday and closed at Rs 288.10.

The Reliance group has been on a clean-up exercise after it acquired management control of BSES a few months ago through a second open offer.

It has also floated two special purpose vehicles Reliance Energy Trading and Reliance Energy Transmission for power trading and transmission, respectively.