MUMBAI: Regulator Sebi on Wednesday deferred implementation of revised norms pertaining to royalty payment by listed companies to related parties by three months.
Following the decision taken at the Sebi's board meeting here, the implementation of a provision of the amended norms would has been deferred till June 30, 2019. They were to be implemented from April 1 this year.
Shareholders' approval would be needed for making royalty or brand payments to related parties exceeding 2% of the particular listed entity's consolidated turnover.
In a release, the watchdog said the decision has been taken in view of representations received on the matter.
As per the revised norms, payments made to related parties towards brand usage or royalty are to be considered material if the transaction is more than two per cent of the listed entity's annual consolidated turnover during a financial year.
This required approval of the shareholders with no related party having a vote to approve such resolutions. The provision was to come into effect from April 1, 2019.
"In view of the representations received on the subject and with a view to analysing them, the board decided to defer the implementation of this provision for three months ie till June 30, 2019," the release said.
The amendments were made to Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 - payment relating to royalty and brand usage.
Besides, Sebi board decided to come out with a consultation paper on Self Regulatory Organisations (SROs) in securities market.
A public consultation process would be undertaken towards amend SRO regulations. The objective is to define an SRO, rationalise the process of recognition as well as strengthen the role of such entities in the securities market, the release said.
At the meeting, the board also approved Sebi's budget for the 2019-20 fiscal.
This story has been published from a wire agency feed without modifications to the text.