TMI BlogRelated party transactionsX X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceeds rupees one thousand crore or ten per cent of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity, whichever is lower. ] 2 [ (1A) Notwithstanding the above, 7 [ with effect from July 01, 2019, ] a transaction involving payments made to a related party with respect to brand usage or royalty shall be considered material if the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceed 8 [ five ] percent of the annual consolidated turnover of the listed entity as per the last ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the last audited financial statements of the subsidiary; (d) prior approval of the audit committee of the listed entity shall not be required for a related party transaction to which the listed subsidiary is a party but the listed entity is not a party, if regulation 23 and sub-regulation (2) of regulation 15 of these regulations are applicable to such listed subsidiary. Explanation: For related party transactions of unlisted subsidiaries of a listed subsidiary as referred to in (d) above, the prior approval of the audit committee of the listed subsidiary shall suffice. ] (3) Audit committee may grant omnibus approval for related party transactions proposed to be entered into by the listed entity subject to the following con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as defined by the audit committee under sub-regulation (2), ] shall require 16 [ prior ] approval of the shareholders through resolution and 3 [ no related party shall vote to approve] such resolutions whether the entity is a related party to the particular transaction or not: 17 [ Provided that prior approval of the shareholders of a listed entity shall not be required for a related party transaction to which the listed subsidiary is a party but the listed entity is not a party, if regulation 23 and sub-regulation (2) of regulation 15 of these regulations are applicable to such listed subsidiary. Explanation: For related party transactions of unlisted subsidiaries of a listed subsidiary as referred above, the prior approval o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approval of the shareholders in the first General Meeting subsequent to notification of these regulations. 21 [ (9) The listed entity shall submit to the stock exchanges disclosures of related party transactions in the format as specified by the Board from time to time, and publish the same on its website: Provided that a high value debt listed entity shall submit such disclosures along with its standalone financial results for the half year: Provided further that the listed entity shall make such disclosures every six months within fifteen days from the date of publication of its standalone and consolidated financial results: Provided further that the listed entity shall make such disclosures every six months on the date o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken together with previous transactions during a financial year, exceeds ten percent of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity. 12. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/55 dated 09-11-2021 w.e.f. 01-04-2022 13. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/55 dated 09-11-2021 w.e.f. 01-04-2022 before it was read as audit committee. 14. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/55 dated 09-11-2021 w.e.f. 01-04-2022 15. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/55 dated 09-11-2021 w.e.f. 01-04-2022 16. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/55 dated 09-11-2021 w.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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