Monday 14 February 2022

SEBI’s rules governing related party transactions requires immediate amendment

SEBI’s rules governing related party transactions requires immediate amendment


Business Standard article titled 'India Inc sees red over new rules governing related party transactions': https://www.business-standard.com/article/markets/india-inc-sees-red-over-new-rules-governing-related-party-transactions-122021100437_1.html


3 months back, when the SEBI board approved the proposal, I had mentioned that RPT amendments are made extremely stringent and would require another round of amendment.

In fact, on the SEBI consultation paper on RPTs, I had written an article titled - Regulating ‘unrelated party transactions’ under the provisions of ‘related party transactions’.

Various industry and business associations are now taking efforts and seeking amendments to the SEBI regulations. Amendments would now take place in due course.

Interestingly, everything other than harmonization of company law provisions and SEBI regulations is being done. Not sure, if this is ease of doing business.

Tough days for listed entities, compliance officers and secretarial auditors.

My LinkedIn post for reference:

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