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Sebi's new RPT rules highlight the problems of tracking such transactions

Disclosures and transparency in RPTs are the best disinfectants against their abuse, according to experts

Sebi
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Securities and Exchange Board of India

Sudipto Dey New Delhi
In February 2019, as regulators stepped up scrutiny of corporate governance and business practices in the fraud-hit housing finance company, Dewan Housing Finance Corporation, the resignation letter of one of the independent directors cited allegations of illegal related party transactions (RPTs) involving promoter group companies. Inte­rest­ingly, in its communication to the stock exchange, the company cited “personal reasons” for the resignation of the independent director.

Few months later, in Novem­ber 2019, in another fund-crunched group, Zee Enter­tainment Enterprises, one of the independent directors resigned from the board citing “several instances of poor corporate governance”. Among the reasons mentioned, key ones were
Topics : SEBI

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First Published: Feb 24 2022 | 6:08 AM IST

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