Sebi panel for more curbs on royalty payouts, information sharing

This, after the corporate battle between Tata and Mistry, where the latter had alleged that boards of Tata cos were sharing info with Tata

The corporate governance panel of the Securities and Exchange Board of India (Sebi) has recommended more checks and balances on royalty and brand payments, related-party transactions and sharing of information between management and entities not part of the board.

Among the key recommendations by the committee is one on the aspect of exchange of price-sensitive information between companies and a promoter no longer a part of the board or management.

The committee said a company could exchange unpublished price sensitive information (UPSI) with its promoters or persons only after the entity enters in an agreement of information-sharing with the designated