 "Related party transactions against interest of minority shareholders: Sebi")
With a rise in corporate failures in recent times, market regulator Securities and Exchange Board of India (Sebi) has flagged concerns on key issues plaguing the corporate sector and suggested that companies take measures to improve their consciousness and integrity.
The primary issue, according to Sebi, is related to party transactions (RPT) that are being extensively used by some companies to raise capital for another firm. The regulator is of the view that while RPTs serve the promoter's purpose to raise capital using mortgage or extension of loans or inter-corporate deposits, it goes against the interest of minority shareholders. Moreover,
