Sebi defers implementation of new royalty payment corporate code

Starting April 1, cos where such payments exceeded 2% of turnover had to obtain shareholder nod

Market regulator Securities Exchange Board of India (Sebi) has deferred implementation of a key corporate governance measure relating to royalty payments at India Inc.

Starting April 1, any company where brand usage or royalty payments exceeded 2 per cent of their annual consolidated turnover required to obtain minority shareholder nod.

Sebi on Wednesday said that its “board (has) decided to defer the implementation of this provision for three months till June 30, 2019.”

While the market regulator didn’t cite a specific rationale for the deferment, it said it has received “representations received on the subject” which it is analyzing.

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