CAIRR Update March 31, 2022

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CAIRR Update March 31, 2022

March 31, 2022
Summary of the circular issued by SEBI on 30/03/2022
Clarification on requirement of Shareholders’ approval for material RPTs under LODR Regulations, 2015 w.e.f 01/04/2022
SEBI vide its notification dated 09/11/2021 required that w.e.f April 1, 2022, all material related party transactions and subsequent material modifications shall require prior approval of the shareholders through resolution. In this connection, SEBI has now clarified that-
1. an existing RPT that has been approved by the audit committee  prior  to  April  1,  2022  which continues  beyond  such  date and becomes material   as   per  the   revised   materiality   threshold  shall   be   placed   before  the shareholders in the 1st General Meeting held after April 1, 2022, as per regulation 23(8) of LODR. No fresh approval is required for an RPT that has been approved by the audit committee and shareholders prior to April 1, 2022.
2. an  RPT  for  which  the  audit  committee  has granted  omnibus approval  shall continue to be placed before the shareholders if it is material in terms of Regulation 23(1) of the LODR.

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