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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Disclosure obligations of listed entities in relation to Related Party Transactions

07-Jan-2022 | SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/0000000006

SEBI vide notification dated September 07, 2021, introduced Regulation 15(1A) of the SEBI (Listing Obligations and Disclosure Requirements), according to which Regulations 15 to 27 of Listing Regulations were applicable to high value debt listed entities1 on a 'comply or explain' basis. Subsequently, vide amendment dated November 9, 2021, Regulation 23 of the LODR Regulations on related party transactions was amended, mandating listed entities that have listed specified securities to submit to the stock exchanges disclosure of Related Party Transactions (RPTs) in the format specified by the Board from time to time. Afterward, SEBI vide circular no. SEBI/HO/CFD/CMD1/CIR/P/2021/662 dated November 22, 2021 had specified following disclosure obligations of listed entities in relation to Related Party Transactions with respect to specified securities: a. Information to be reviewed by the Audit Committee for approval of RPTs; b. Information to be provided to shareholders for consideration of RPTs and; c. Format for reporting of RPTs to the Stock Exchange. Now, since the provisions of Regulation 23 of the LODR Regulations would be applicable to high-value debt listed companies also, SEBI has decided to make provisions of the above-referred circular dated November 22, 2021, applicable to high-value debt listed entities.

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