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No fresh nod needed for approved related party transactions, clarifies Sebi

No fresh nod needed for approved related party transactions, clarifies Sebi

The Securities and Exchange Board of India (Sebi) on Thursday clarified that related party transactions (RPTs) that have been approved by the audit committee and shareholders prior to April 1, 2022, will not be required to obtain fresh approval from the shareholders.

The market regulator, however, has refused to extend the deadline for implementation of the new RPT norms, dashing hopes of India Inc.


Industry body Confederation of Indian Industry (CII) requested Sebi to defer the implementation of the RPT norms, announced in November 2021, by at least six months. It said the new rules, which come into effect from April 1, 2022, would have a far-reaching impact on the running of business.

Sebi has further said RPTs that become ‘material’ under the revised threshold will have to be placed before the shareholders in the first general meeting after April 1, 2022.

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