SEBI vide its notification dated June 27, 2019 published in the Gazette of India, brought an amendment in SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2019.
In the said notification, SEBI based on the representations received from the industry, amended Regulation 23(1A) w.r.t., Related Party Transaction (RPT) pertaining to payment for royalty/ brand usage.
The gist of amendment is as follows:
|RPT w.r.t., payment for royalty/ brand usage: Reg 23(1A)||Considered material if:>|
|Transaction entered with related party for brand usage or royalty whether singly/ taken together with previous transaction during a FY||Prior to Amended||Newly Amended|
|Transaction > 2% of annual consolidated turnover of listed entity.||Transaction > 5% of annual consolidated turnover of listed entity.|