Varnika Pasricha

Associate in the General Corporate Practice at the Mumbai office of Cyril Amarchand Mangaldas. She can be reached at varnika.pasricha@cyrilshroff.com

SEBI’s Hammer and the RPT Nail: Navigating SEBI’s Principles-Based Oversight of Related Party Transactions

Posted in SEBI

Related party transactions (“RPTs”)[1] potentially represent an inherent conflict of interest between the interests of listed entities on the one hand and ‘related parties’ on the other. Since Indian listed entities are significantly promoter driven or closely held, SEBI has been constantly reforming the regulatory framework governing RPTs to mitigate the possibility of abuse.Continue Reading SEBI’s Hammer and the RPT Nail: Navigating SEBI’s Principles-Based Oversight of Related Party Transactions

Asset Management Companies (“AMCs”) act as fiduciaries of unitholders (i.e. investors who hold units in funds managed by an AMC), due to which the Securities and Exchange Board of India (“SEBI”) has mandated various data privacy obligations for AMCs, either directly or through the Association of Mutual Funds of India (“AMFI”).
SEBI, in a private letter to AMCs, AMFI and registrar and transfer agents (“RTAs”) dated July 10, 2020 (“SEBI Letter”), required that digital platforms involved in distribution/ advisory and AMCs/ RTAs must respect unitholder’s data privacy. The letter included the following two mandates:
- unitholder data should not be shared with group entities having multiple business/ products; and
- products and services of group companies cannot be cross marketed.