Fix royalty payment

Sebi should increase threshold to 5% of turnover

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