The SEBI, in an interpretative letter, clarified that entities that are not able to take shareholders’ approval in material related party transactions due to embargo that related party cannot vote to approve such transactions shall follow the provision laid down in explanation 3 to Regulation 16(1A) of LODR Regulation, which states “comply or explain reasons for such non-¬compliance and the steps initiated to achieve full compliance in its quarterly compliance report filed with Stock Exchanges.The SEBI, in an interpretative letter, clarified that entities that are not able to take shareholders’ approval in material related party transactions due to embargo that related party cannot vote to approve such transactions shall follow the provision laid down in explanation 3 to Regulation 16(1A) of LODR Regulation, which states “comply or explain reasons for such non-¬compliance and the steps initiated to achieve full compliance in its quarterly compliance report filed with Stock Exchanges.taxmann.com Latest Statutory HappeningsRead More
