Presentation on Related Party Transaction(RPTs)- An Overview

Amendments to the SEBI (Debenture Trustee) Regulations, 1993 by Somesh Lund

The Securities and Exchange Board of India (SEBI) in its board meeting held on 26 April 2017 [1] has approved the amendments to the SEBI (Debenture Trustee) Regulations, 1993[2] (hereinafter referred to as “Regulations”)as proposed in the consultative paper issued on 16 February 2017[3].The consultative paper was placed on SEBI’s website and suggestions were invited.

The Companies acts, 2013, as well as the SEBI regulations, prescribe the framework pertaining to debenture trustees. This led to several overlaps and ambiguities. Thus with a view to address this issue, SEBI formed a task force comprising of SEBI officials and representatives of the debenture trustees to conform the Debenture Trustee Regulations with the Companies Act,2013.

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Comparison of definition of Related Party as per AS -18 and IND -AS 24 by CS Vinita Nair

Several entities will be required to comply with Indian Accounting Standards (IND-AS) w.e.f. 1st April, 2017 with the comparatives for the periods ending on 31st March, 2017, or thereafter.

Accordingly, the related party transactions will also be governed by IND-AS 24. Therefore, it is extremely essential to update the list of related parties in terms of the expansive definition under IND- AS 24 as well as take stock of transactions undertaken with each of these entities in the immediately preceding financial year to get a sense of the nature of transactions in terms of frequency, volume, value and terms of such transactions. Listing of related party transactions as per the expanded ambit of the term will be relevant, for comparison purposes, even for last financial year, that is, 2016-17 as the comparative for the previous period will also be provided. The disclosures from directors and KMP will have to provide list of relatives considering the definition under Act, 2013 as well as definition of close members of the family of such director/ KMP and accordingly details of enterprises where such close members exercise control or significant influence.

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