"India's Companies Act requires board approval for related party transactions, and when they exceed a prescribed size, approval from shareholders is required. They have said they are reviewing the recent Delhi court decision.India's Supreme Court has ordered the Singh brothers not to sell or dilute their shareholding in Fortis until it decides on Daiichi's petition to place a longer-term halt on asset sales by the Singhs. The siblings are contesting that ruling.Fortis Healthcare said its wholly-owned arm Fortis Hospitals had deployed funds to the tune of Rs 473 crore as secured short-term investments to group firms of its promoters, billionaire Singh brothers. Subsequently, the same loans have been recognised as related party transactions in compliance with necessary regulatory requirements. Fortis Healthcare further said, "These loans are adequately secured and the repayment has since commenced as per the agreed payment schedule.

Source: Economic Times February 09, 2018 06:25 UTC