6/18/2023 0 Comments Related party transactions![]() Format of disclosureĩ. Is there any format prescribed by SEBI for reporting the RPTs? ![]() The option of comply or explain is available only till March 31, 2023.Ĩ. Whether any penalty is attracted in case of non-submission? However, in case the HVDLE chooses to disclose as per the timeline available for an equity listed entity, it will have to explain for not complying. The stricter of the requirement will apply. Pursuant to the SEBI (LODR) (Fifth Amendment) Regulations, 2021 effective from SeptemHVDLEs are required to disclose the RPTs along with the standalone financial results on a half-yearly basis.ħ. What will be the timeline for an equity listed entity that is also an HVDLE? SEBI has prescribed stricter timelines for HVDLEs to disclose the RPTs to the stock exchange. Ap– on the date of publication of its standalone and consolidated financial results on a half-yearly basis.Ħ. Whether the revised timelines are also applicable to HVDLEs? Ap– within 15 days from the date of publication of its standalone and consolidated financial results on a half-yearly basis Pursuant to the present amendment, the RPTs are required to be disclosed to the SEs as per the following revised timelines: Timeline for disclosureĥ. What is the revised timeline to disclose the RPTs to the SEs? 25 crores) and continue to remain applicable for the FYs 2022-23 to 2024-25. ![]() RPT provisions shall become applicable for the FY 2022-23 even if the specified threshold is reduced (paid up capital Rs. E.g., RPT disclosures is mandatory for the FY 2021-22 (criteria as on March 31, 2021, paid up capital-Rs. If any of the criteria (paid up equity share capital and net worth) is not satisfied, RPT disclosures shall be mandatory for the company.įurther, once the RPT regulations become applicable to a listed entity, it shall continue to remain applicable till such time the equity share capital or the net worth of such entity reduces and remains below the specified threshold for a period of three consecutive financial years.įor. 25 crores, as on the last day of the previous financial year. 23 shall not apply, in respect of listed entity having paid up equity share capital not exceeding Rs. The compliance with the provisions as specified in reg. 15(2) interpreted? ( BSE circular dated Ap) The disclosure is required to be submitted on a half-yearly basis.ģ. Are the companies required to provide RPT disclosures for the second half year, on year-to-date basis or on six-months end basis? ( BSE circular dated Ap)Īs per the SEBI circular, the disclosure must be on six-month end basis for both, first half and second half year.Ĥ. How is the exemption from RPT disclosure under reg. Additionally, HVDLEs are also required to submit disclosure.Ģ. What is the periodicity of the disclosure? 15 (2) are required to submit the disclosure. Applicabilityġ. Who are required to submit the disclosure?Ĭompanies having listed its specified securities and not covered under the exemption provided under Reg. In the FAQs below, we have analyzed and responded to several possible queries that are likely to arise in this regard. Further, our detailed FAQs on the same can be accessed here.Īs 6 months have elapsed subsequent to the revised RPT framework coming into effect, the listed entities, including HVDLEs are now required to report the RPTs to the SEs for the half year ended Septempursuant to provisions of Reg. Our analysis and articles on the revised RPT framework can be accessed at our Resource Centre on RPT. While the amendments resulted in substantial changes in the RPT framework, they also posed certain practical difficulties and additional compliance burden on the listed entities, raising several practical questions. Information to be placed before the Audit Committee and shareholders (in case of material RPT) and the format of disclosure of RPTs to be filed with the Stock Exchanges (‘ SEs’) has been separately prescribed vide SEBI Circular dated November 22, 2021. The circular was also made applicable to High Value Debt Listed Entities (‘ HVDLEs’) vide SEBI Circular dated January 7, 2022. The amended provisions have been effective from April 01, 2022, except for the few provisions which will be applicable w.e.f. SEBI, vide its notification dated Novemamended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘ Listing Regulations’) carrying out radical changes in the regulatory framework for the Related Party Transactions (‘ RPTs’), including but not limited to the definition of Related Party (‘ RP’), RPTs, its approval mechanism and disclosure requirements to the stock exchange. Disclosure of RPTs to which listed entity is a partyĭisclosure of RPTs to which the listed entity is not a party
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