Sebi to start consultation on self-regulating organisations in securities market

The board of market regulator Securities and Exchange Board of India (Sebi) at its meeting on Wednesday decided to initiate public consultation on self regulating organisations (SROs) in the securities market. Sebi will soon come out with a Consultation Paper on Self Regulatory Organisations 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. 
The board also decided  to  defer  the  implementation  of  this  provision  relating to disclosure of payment relating to royalty and brand usage for  three months, ie, till 30 June 2019 in view of the representations received on the subject and with a view to analysing them. 
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 per cent 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 1 April 2019.