Sebi strengthens related party transactions rules; clears superior voting rights shares framework - MMJC

SEBI in the Board Meeting held on 28 Sept 2021 approved changes in RPT framework in LODR. 

Views of our Partner – Makarand Joshi got covered in the Week, Mint, Hindustan Times, DT, Republic World, Outlook India 

He believes that these changes may trigger concerns in minds of some corporates 

Various cases and a recent ruling by NCLT in the Videocon case have probably triggered changes in the RPT framework, however that can create a lot of anxiety in minds of the corporate world.

“Simply put, any transaction benefiting related party (even indirectly) would need the approval of audit committee and shareholders of a listed company. When the transaction is with the third party but may benefit related party would be difficult to identify and can sometimes lead to unnecessary allegations of violation on corporates”.

For more details – please follow the link

https://www.thehindubusinessline.com/markets/stock-markets/sebi-moves-to-empower-independent-directors/article35044704.ece