Mumbai, Sep 28 The SEBI board considered and approved on Tuesday the amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in relation to regulatory provisions on related party transactions (RPTs).
As per the approved amendments, the definition of related party has been changed to include all persons or entities forming part of promoter or promoter group, irrespective of their shareholding. Also, any person/entity holding 20 per cent equity shares or more in the listed entity or 10 per cent or more will be treated as related party.
The SEBI board also approved an amendment that has changed the definition of RPT, which will now include transactions between the listed entity or any of its subsidiaries on one hand, and a related party of the listed entity or any of its subsidiaries on the other hand. It will also include those transactions between the listed entity or any of its subsidiaries on one hand, and any other person or entity on the other, the purpose and effect of which is to benefit a related party of the listed entity or any of its subsidiaries w.e.f. April 1, 2023.
Prior approval of the shareholders of the listed entity will be required for material RPTs having a threshold of lower than Rs 1,000 crore or 10 per cent of the consolidated annual turnover of the listed entity. Approval of the Audit committee shall also be required for all RPTs and subsequent material modifications as defined by the Audit committee, RPTs where subsidiary is a party but listed entity is not a party, subject to threshold of 10 per cent of the consolidated turnover of the listed entity, and 10 per cent of the standalone turnover of the subsidiary w.e.f. April 1, 2023.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor