India Inc sees red over new rules governing related party transactions

Companies point out that a materiality threshold of Rs 1,000 crore for related party transactions will slow down business process, harm long term plans

Corporate India is worried over the new norms on related party transactions. Multiple companies and industry bodies have approached market regulator SEBI saying that the new rules, which take effect on April 1, will slow down business decisions and undermine competitiveness.

India Inc has particularly opposed the regulator's decision to set up a threshold of Rs 1,000 crore for related party transactions, beyond which companies will have to take approval from shareholders

The Primary Market Advisory Committee (PMAC) of SEBI, which advises the regulator on policy framework related to primary markets, is likely to meet on Friday to deliberate over