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Royalty rise evokes calls for frequent shareholder nods

Mint Mumbai

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November 26, 2024

Royalty payments are not just rising, but are also higher than dividends in some cases, found a recent Sebi study

- Neha Joshi

Royalty rise evokes calls for frequent shareholder nods

Royalty payments by India-listed companies to their parents or related parties should be backed by frequent shareholder approvals, according to experts, as such payouts have been rising.

Royalty payments are not just rising, but are also higher than dividends in some cases, found a recent study conducted by the Securities and Exchange Board of India's (Sebi's) Department of Economic and Policy Research Analysis, which reviewed 1,538 instances of such payouts across 233 listed firms from FY14 to FY23.

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