Alerts & Updates 22nd Apr 2019

SEBI Update : Royalty payments to related parties

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The Securities and Exchange Board of India (“SEBI”) vide notification no. SEBI/LAD-NRO/GN/2019/07 dated March 29, 2019 has issued the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2019.As a result of the amendment to Regulation 23(1A), with effect from July 1, 2019, payments made to related parties by a listed entity for brand usage or royalty shall be deemed to be material related party transactions, if such transactions exceed 2% of the annual consolidated turnover of the listed entity during a financial year.

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