New Delhi: A Sebi-appointed panel has proposed sweeping changes to strengthen the monitoring and enforcement of norms pertaining to related party transactions. Tweaking the definition of Related Party and Related Party Transactions (RPTs) and revising thresholds for classification of such transactions as material, are among the recommendations. Gangwal had questioned board chairman M. Damodaran for not adopting the agreed related-party transactions (RPTs) policy. Under the proposal, related party should be any person or entity belonging to the promoter or promoter group of the listed entity. Also, transaction between listed entity or its subsidiaries and any other entity which is aimed to benefit a related party should be considered as a RPT.

Source: Mint January 27, 2020 15:33 UTC