A study by SEBI highlights how several companies have increasingly been using royalty payments to related parties and scrounging on dividends to investors.
Dividend is a very common reward in the world of stock market investing. What if we told you that in the last decade, the dividends pool available for the investors in India has become smaller. Not because these companies aren’t doing well but because they want to keep most of the returns for themselves.
According to a study published by Securities and Exchange Board of India (SEBI) last week, the royalty payments made by listed companies to their related parties (RP) entities have more than doubled in the last decade. From Rs 4,995 crore in the 2014 fiscal, to Rs …
Disha is a writer at The Morning Context. She has previously worked at the digital production desk of Reuters. Prior to that, she was a sub-editor at Deccan Herald.
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disha@mailtmc.com
Bengaluru