Securities and Exchange Board of India
PR No. 11/2019
SEBI Board Meeting
The SEBI Board met in Mumbai today and took the following decisions:
I. Consultation Paper on Self Regulatory Organizations in Securities Market The Board approved the proposal for undertaking a public consultation process to amend the SEBI (Self Regulatory Organizations) Regulations, 2004 with an objective of defining SRO, rationalising the process of recognition and strengthening the role of Self Regulatory Organizations in the securities market.
II. Amendments to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – payment relating to royalty and brand usage
As per Regulation 23(1A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, payments made to related parties towards brand usage or royalty are to be considered material if the transaction(s) exceed 2% of the annual consolidated turnover of the listed entity during a financial year. This requires approval of the shareholders, with no related party having a vote to approve such resolutions. This provision was to come into effect from April 1, 2019.
In view of the representations received on the subject and with a view to analyzing them, the Board decided to defer the implementation of this provision for three months i.e. till June 30, 2019.
III. Budget Estimates for the Financial Year 2019-2020
The SEBI Budget for the financial year 2019-20 was considered and approved by the Board.
March 27, 2019