Loss-making companies pay royalty too: Sebi

A study by SEBI revealed that some listed Indian companies prioritized royalty payments to promoters over shareholder dividends. The study, conducted over a 10-year period, found that 25% of companies paid over 20% of their net profit as royalty. Some companies paid royalty despite not declaring dividends or even making profits.

Nov 15, 2024 - 01:30

Loss-making companies pay royalty too: Sebi

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A study by SEBI revealed that some listed Indian companies prioritized royalty payments to promoters over shareholder dividends. The study, conducted over a 10-year period, found that 25% of companies paid over 20% of their net profit as royalty. Some companies paid royalty despite not declaring dividends or even making profits.