Often, compliance-related rules and regulations are framed while keeping in mind the lowest common denominator. One such area, where recent tweaks in guidelines and regulations are proving burdensome, is Related Party Transactions (RPT). Two areas need attention. First, recent amendments to existing guidelines expand the scope of what would be described as a related party (RP). Second, the criteria for what constitutes ‘materiality’ have become more stringent.
At a recent joint session of the India CFO and CEO Forums in Hyderabad, Hufriz Wadia, Partner with AZB, provided a template through which to understand these amendments. This podcast offers a brief summary of the session.