Disclosure obligations of listed entities in relation to Related Party Transactions
Summary
This circular extends specific disclosure obligations regarding Related Party Transactions to high value debt listed entities on a 'comply or explain' basis. It mandates that these entities adhere to the same audit committee review, shareholder information, and reporting formats previously specified for other listed entities in November 2021. The provisions are effective immediately and issued under Section 11(1) of the SEBI Act read with Regulation 101 of the LODR Regulations.
Text
Regulations 15 to 27 of Listing Regulations shall be applicable to high value debt listed entities on a ‘comply or explain’ basis.
Listed entities that have listed specified securities must submit to the stock exchanges disclosure of Related Party Transactions (RPTs) in the format specified by the Board from time to time.
Disclosure obligations include: a. Information to be reviewed by the Audit Committee for approval of RPTs; b. Information to be provided to shareholders for consideration of RPTs; c. Format for reporting of RPTs to the Stock Exchange.
Provisions of the circular dated November 22, 2021 are made applicable to high value debt listed entities since Regulation 23 applies to them.
This Circular shall come into force with immediate effect. Stock Exchanges are advised to bring the provisions to the notice of all listed entities that have issued specified securities and disseminate on their websites.
The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 101 of the LODR.
Source: SecMarx — Disclosure obligations of listed entities in relation to Related Party Transactions. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.