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Below the Input on Corporate Governance for related party transactions by Prashant Bhojwani, Partner, Corporate Tax, Tax & Regulatory Services, BDO India

"Related party transactions have been a key focus area for the SEBI in recent times. Significant overhauls and clarifications have been issued, including specification of minimum information requirements for audit committees and shareholders. The latest amendment introduces a slab-based threshold for determining material related party transactions in an attempt to enhance ease of doing business while retaining safeguards to protect investor interests. Easing of the threshold from a uniform INR 1,000 crore limit to a slab-based framework (with highest slab capped at INR 5,000 crore) is expected to substantially reduce the number of related party transactions classified as material, thereby simplifying compliance requirements. This change has been a long-standing industry demand and will particularly benefit large corporates to ease compliance burden."

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