Sebi's related party transaction circular to come up for discussion in regulator's Primary Market Advisory Committee meeting today

The Primary Market Advisory Committee (PMAC) of Securities and Exchange Board of India's (SEBI) is set to discuss contents of a circular on the related party transactions that is to be implemented on 1 April 2022.  Zee Business' Tarun Sharma reports.

The committee tackles issues related to listed companies.

Sharma said that several hurdles were being faced in the implementation of this circular. Market regulator had asked the PMAC committee to look into the matter.  The committee was discussing this issue when Sharma broke this news. 

In the discussions, corporates were also called to give their suggestions and also apprise the regulator about the difficulties being faced by them to implement this circular. 

One of the demands being raised by the companies is to extend the current deadline of 1 April. Another demand is related to the 10 per cent threshold or a Rs 1000 crore amount where the company is required to take shareholders' permission on transactions over and above the said limits. They are also required to take approvals of the audit committee.

He said that this is posing problems for the bigger companies. The demand is to increase the threshold, Sharma added. 

If the key management personnel (KMP) do any business with another company, that will also come under the related party transactions, Sharma said in his report. The corporates have requested to relook at the above-mentioned issues.

In response to this, SEBI had asked the companies to share their comments in the meeting after preparing a well-researched paper on the same and presenting it in the PMAC meeting held by Sebi.

For more details, Watch Full Video Here:-

#BreakingNews

SEBI 

pic.twitter.com/DWLuUTKW3X

— Zee Business (@ZeeBusiness) March 15, 2022