Clarification on Related Party
Transactions by Listed Entities

PUBLISHED ON: 10-04-2022

SEBI has released the following clarifications in relation to omnibus approval for material Related Party Transactions (“RPT”) proposed to be entered into by listed entities, under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

• Omnibus approval for material RPTs, granted by shareholders of a listed entity in the annual general meeting, would be valid up to the date of the next annual general meeting, for a period not exceeding 15 months.
• Omnibus approval for material RPTs, granted by shareholders of a listed entity in general meetings other than annual general meetings, would be valid for a period not exceeding 1 year.

The aforementioned was clarified by SEBI vide a circular dated April 8, 2022 (available here).