<p>India Inc has raised concerns over some of the new related party transaction (RPT) rules prescribed by market regulator Sebi which will come into effect from April this year.</p>.<p>According to documents accessed by PTI, industry chambers Ficci and CII have suggested that the provisions be relaxed/clarified, observing that the amendments potentially prejudicially impact and disrupt the functioning of listed entities and affect ease of doing business.</p>.<p>The key concern raised by the industry is regarding the threshold of Rs 1,000 crore for related party transactions, beyond which companies will have to take approval from shareholders.</p>.<p>"FICCI strongly recommends that the criteria of Rs 1,000 crore for determination of 'material' RPTs be removed and only percentage of turnover or net-worth be prescribed," the industry body represented.</p>.<p>The Confederation of Indian Industry (CII) requested that the "absolute numerical threshold be omitted and threshold limit of 10 per cent of Annual Consolidated Turnover of the listed entity be re-instated".</p>.<p>Prior approval of the shareholders of a listed entity may be specifically excluded for a related party transaction to which the listed subsidiary is a party but the listed entity is not a party, CII has suggested.</p>.<p><strong>Check out DH's latest videos:</strong></p>
<p>India Inc has raised concerns over some of the new related party transaction (RPT) rules prescribed by market regulator Sebi which will come into effect from April this year.</p>.<p>According to documents accessed by PTI, industry chambers Ficci and CII have suggested that the provisions be relaxed/clarified, observing that the amendments potentially prejudicially impact and disrupt the functioning of listed entities and affect ease of doing business.</p>.<p>The key concern raised by the industry is regarding the threshold of Rs 1,000 crore for related party transactions, beyond which companies will have to take approval from shareholders.</p>.<p>"FICCI strongly recommends that the criteria of Rs 1,000 crore for determination of 'material' RPTs be removed and only percentage of turnover or net-worth be prescribed," the industry body represented.</p>.<p>The Confederation of Indian Industry (CII) requested that the "absolute numerical threshold be omitted and threshold limit of 10 per cent of Annual Consolidated Turnover of the listed entity be re-instated".</p>.<p>Prior approval of the shareholders of a listed entity may be specifically excluded for a related party transaction to which the listed subsidiary is a party but the listed entity is not a party, CII has suggested.</p>.<p><strong>Check out DH's latest videos:</strong></p>