Finance Update

royalty payment: Sebi defers provision for shareholder nod for related party royalty payments

At the board meet on Wednesday, the regulator said it deferred the implementation of this provision.

ETMarkets.com|

Mar 27, 2019, 05.05 PM IST

BCCL

The Sebi budget for the financial year 2019-20 was considered and approved by the board on Wednesday.

Mumbai: The Securities and Exchange Board of India (

Sebi

) has deferred implementation of the provision to seek shareholder approval for material payments made to related parties for brand usage or royalty, by three months to June 30.

Such payments are considered material if they exceed 2 per cent of the annual consolidated turnover of the listed company in the financial year. The provision was to come into effect from April 1.

At the board meet on Wednesday, the regulator said it deferred the implementation of this provision, in view of the representations received on the subject.

The Sebi board approved the proposal for undertaking a public consultation process to amend the SEBI (Self Regulatory Organizations) Regulations, 2004.

Such amendments are with an objective of defining SRO, rationalising the process of recognition and strengthening the role of such organizations in the securities market.

The Sebi budget for the financial year 2019-20 was considered and approved by the board on Wednesday.

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Source

Prakash Poojary
Business Analyst

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