To avoid IndiGo-like feud, Sebi panel proposes sweeping changes to RPT norms

New Delhi: A Sebi-appointed panel has proposed sweeping changes to strengthen the monitoring and enforcement of norms pertaining to related party transactions.

Tweaking the definition of Related Party and Related Party Transactions (RPTs) and revising thresholds for classification of such transactions as material, are among the recommendations.

The board of directors of InterGlobe Aviation Ltd., the company that operates the country’s largest airlines IndiGo, has approved a new policy on RPT, IndiGo’s co-promoter Rakesh Gangwal said last year.

Gangwal had questioned board chairman M. Damodaran for not adopting the agreed related-party transactions (RPTs) policy.