14-15 December 2011- Mumbai, India
On 14-15 December 2011, the India-OECD Corporate Governance Policy Dialogue was launched on the topic of related party transactions. The structure of listed companies, especially the concentration of ownership, and the use of company groups in India have an impact on the type and intensity of related party transactions. The corporate governance framework to manage these transactions and to protect minority shareholders in India was reviewed by the Committee and discussed by the key players at this meeting. While laws and regulations are in place, effective means of redress still need to be developed. Related party transactions are a top priority not only for the government and regulators but also the corporate and investment communities. The discussion focused on :
- Understanding the various facets of RPTs and the ways they can be misused to undermine minority interest, particularly in listed companies.
- Designing an appropriate disclosure, approval and monitoring framework for RPTs by listed companies in India.
- Designing an appropriate enforcement mechanism for abusive RPTs.
- Enhancing the skills of regulatory bodies to understand the implication of various RPTs to the shareholders and deal with lapses and abuse.