related party transactions

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All about Related Party Transactions – Part 4 (Disclosures, Audit Committee, Registers, Meeting notices, Penalties)

Disclosures Companies Act 2013 Specified Transactions – Non Arm’s Length transactions & Material Arm’s Length transactions To be reported vide Form AOC-2 LODR Half yearly on consolidated basis AS/Ind AS All transactions Audit Committee Approval or any subsequent modification of RPTs In case of RPTs other than those referred to in Sec 188, Audit Committee …

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SEBI Warns Billionaire Anil Agarwal’s Vedanta Over Rs 1407 Crore Related-Party Transactions

SEBI Warns Billionaire Anil Agarwal’s Vedanta Over Rs 1,407 Crore Related-Party Transactions

Capital market regulator SEBI has warned billionaire Anil Agarwal’s Vedanta Ltd for executing Rs 1,407 crore of related-party transactions without prior approval of the audit committee. In a warning letter, which Vedanta as per SEBI directions disclosed to stock exchanges, the regulator said it will take action if such actions were repeated in future. The mining conglomerate’s …

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All about Related Party Transactions – Part 3 (Voting and Approval))

Voting (Sec 188, Sec 184) The basic question anyone can raise now is that “Can a Related party vote?” If yes, in what circumstances? Listed Companies – RPs can’t vote (whether party to transaction or not) All Material RPTs shall require approval of the shareholders through a resolution (Regulation 23) Unlisted Public Companies – If …

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All about Related Party Transactions – Part 2 (Determination & Approval)

Determination of Related Party Transactions Related Party Transaction in the context of companies means transaction between the company and its related parties. Every transaction with related party is related party transaction, however, approval mechanism may be different and situational. Transactions with related parties need not always be disadvantageous to the parties concerned. The concern arises …

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All about Related Party Transactions – Part 1 (Definition Part)

Framework Companies Act – Sections 177 & 188 SEBI (LODR) – Regulation 23 Accounting – AS 18, Ind AS 24 What is a Related Party? (Answered as per Companies Act) Individual Sense :- Director, Relative of Director KMP, Relative of KMP Director (and his/her relative) of Holding Company (Except Independent Director) KMP (and his/her relative) …

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