https://vinodkothari.com/wp-content/uploads/2023/06/vinod-kothari-logo.png00Staffhttps://vinodkothari.com/wp-content/uploads/2023/06/vinod-kothari-logo.pngStaff2022-01-22 14:29:572022-08-12 15:49:42Related Party Transactions -Implementing The New LODR Framework
2replies
Anushka Vohra says:
Hi Muffaddal, for interpreting promoter and promoter group we shall refer to the definition given under ICDR.
In case of related party definition as per amended LODR, promoter is considered a related party. Further it says that
“Any person or entity forming part of the promoter or promoter group of listed entity.” is a related party irrespective of their shareholding in listed entity. The academic question is whether should we cover each and everybody who is related to promoter and promoter group entities under related party definition, like for an example whether an individual who is a director in one of promoter group entity or someone holding minority shareholding in one of the promoter group entity will also fall under definition of related party? extending the meaning of any person or entity forming part of the promoter or promoter group!!! Or we just stick to promoter and promoter group definition given under ICDR.
Hi Muffaddal, for interpreting promoter and promoter group we shall refer to the definition given under ICDR.
In case of related party definition as per amended LODR, promoter is considered a related party. Further it says that
“Any person or entity forming part of the promoter or promoter group of listed entity.” is a related party irrespective of their shareholding in listed entity. The academic question is whether should we cover each and everybody who is related to promoter and promoter group entities under related party definition, like for an example whether an individual who is a director in one of promoter group entity or someone holding minority shareholding in one of the promoter group entity will also fall under definition of related party? extending the meaning of any person or entity forming part of the promoter or promoter group!!! Or we just stick to promoter and promoter group definition given under ICDR.