SEBI Tweaks Norms On Related Party Transactions
NDTV
Under the new rules, SEBI said the related party will be any person or entity belonging to the promoter or promoter group of the listed entity
Markets regulator Securities and Exchange Board of India (SEBI) has made sweeping changes to strengthen the monitoring and enforcement of norms pertaining to related-party transactions.
The regulator has tweaked the definition of 'related party' and 'related-party transactions' (RPTs), according to a notification.
It made changes to the process followed by a company's audit committee for approval of RPTs that are material.
Further, there will be a format for reporting of RPTs to the stock exchanges. Cases like Zee, Dish TV and the recent ruling by NCLT in the Videocon case might have probably triggered changes in the RPT framework.