Omnibus approval for related party transactions on annual basis by Listed Companies in India

Omnibus approval for related party transactions on annual basis by Listed Companies in India

The rules of the Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015.

2. Amendments made to  the Companies (Meetings of Board and its Powers) Rules, 2014,-

(i) After rule 6, the following rule shall be inserted, namely:-

“6A. Omnibus approval for related party transactions on annual basis.- All related party transactions shall require approval of the Audit Committee and the Audit Committee may make omnibus approval for related party transactions proposed to be entered into by the company subject to the following conditions, namely:-

(1) The Audit Committee shall, after obtaining approval of the Board of Directors, specify the criteria for making the omnibus approval which shall include the following, namely:-

(a) maximum value of the transactions, in aggregate, which can be allowed under the omnibus route in a year;

(b) the maximum value per transaction which can be allowed;

(c) extent and manner of disclosures to be made to the Audit Committee at the time of seeking omnibus approval;

(d) review, at such intervals as the Audit Committee may deem fit, related party transaction entered into by the company pursuant to each of the omnibus approval made;