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Big firms ask Sebi to reverse 'tedious, complicated' related-party rule

The regulator tightened the norms after alleged irregularities were observed in the case of some companies including DHFL and Fortis Healthcare.

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Dhwani Pandya | Bloomberg
Companies want India’s capital market regulator to change proposed rules on transactions between group firms, founders and related entities as they will lead to an increase in compliance costs and delay decision making. 

Engineering major Larsen & Toubro Ltd. and lobby groups including the Confederation of Indian Industry want the Securities and Exchange Board of India to scrap the mandatory shareholder approval for deals beyond 10 billion rupees ($134 million). Instead, the existing rule of 10% of annual turnover should prevail even after the new rules kick in on April 1.

Late last year, SEBI tightened rules on related-party transactions to curb

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First Published: Feb 21 2022 | 8:31 AM IST

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