Revisiting Related Party Transactions In India: Aligning Governance Principles With Global Best Practices
Keywords:
Related Party Transaction, Regulatory Framework, Solution, Global Experience, IndiaAbstract
Regulating corporate affairs is crucial for an emerging global
economy like India. The Related Party Transaction (RPT) is a
key aspect of corporate governance. Despite the Comprehensive
regulations, various problems and lacunae persist in the laws
related to RPTs in India, which has also been recognized in the
SEBI Working Committee Report, which has recommended
various suggestions for enhanced transparency. The objective of
the study is to examine the Regulatory framework related to
RPT in India. Furthermore, the study incorporates global
experiences regarding RPT and learning best practices to
regulate it in India. The study is strictly doctrinal in nature and
based on the analysis of secondary data. The study found
corporate governance principles as a panacea to all the
problems related to RPT in India, and compliance coupled with
strong legislation can be a basis to ensure fully functional
Regulatory laws. This paper, after comparatively analyzing
several Countries, found that Hong Kong and Singapore, despite
not having Strong laws, have performed better in terms of
Reporting and Compliance, the secret being the incorporation of
corporate governance in the legislation.
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