India's markets regulator flags need for tighter regulations as royalty payments soar

India's markets regulator on Thursday published a study that showed a jump in payment of royalty by listed companies and flagged the need for tighter regulations. The study, conducted between fiscal year 2014 and 2023 and comprised 233 companies, showed that one out of four times listed companies paid royalty to their so-called related parties (RPs) exceeding 20% of their net profits. Securities and Exchange Board of India (SEBI) said one out of two times listed companies that paid royalty, did not pay dividend or paid more royalty to RPs than dividend paid to other shareholders.