Business Standard

Fix royalty payment

Sebi should increase threshold to 5% of turnover

Fix royalty payment
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The private sector and non-financial entities constitute only 20 per cent of the total issuances, with the remaining being state-owned firms

Business Standard Editorial Comment
The Securities and Exchange Board of India (Sebi) has decided to put on hold its mandate to give minority shareholders a greater say in deciding royalty payments by listed companies. Starting April 1, listed companies had to seek approval from a “majority of minority” shareholders for making royalty payments to a related party, with respect to brand usage exceeding 2 per cent of the annual consolidated turnover. The decision to review the move and defer implementation till June 30 was prompted by the adverse feedback it had received on the proposed move. In a board meeting memorandum, Sebi has listed

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First Published: Apr 29 2019 | 12:47 AM IST

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