Sebi\'s move to relax threshold for royalty payments a relief for India Inc

Sebi's move to relax threshold for royalty payments a relief for India Inc

New 5% threshold set by market regulator is unlikely to create discomfort for listed firms

Samie Modak  |  Mumbai 

The Securities and Exchange Board of India’s (Sebi’s) move to relax the threshold for royalty payments from 2 per cent to 5 per cent has come as a big relief for India Inc.

An analysis of the royalty payments made by listed firms in 2017-18 (2018-19 wherever the data is available) shows almost all companies are below the new 5-per cent threshold. Under the new rules, any listed company has to obtain approval of a ‘majority of minority’ shareholders for making payments exceeding 5 per cent of the annual consolidated turnover to a related party, with respect ...

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Read our full coverage on Royalty payments
First Published: Mon, July 01 2019. 20:21 IST