Procedure for omnibus approval for related parties transaction

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swati

21 Points Posted on 13 May 2016

Dear All, Kindly clarify that as per the Companies (Meeting of the Board and its Powers) Second Amendment Rules, 2015, is it mandatory that the omnibus approval for the related parties transaction shall be granted by the audit committee only after the criteria for the granting the same has been approved by the Board of the Company, if yes, kindly provide the procedure for the same

Replies (2)

Jatin Bajaj

1920 Points Posted on 14 May 2016

Yes, Company needs to obtain omnibus approval for related party by Audit Committee but before that approval of Board is Required.

Omnibus approval shall be applicable to the transactions which are repititive in nature.

Omnibus approval shall be applicable o the transaction not exceeding the value of more than 1 crore and shall be valid for a period of 1 year. After expiration of 1 year fresh approval is required.

CS Ankur Srivastava

Company Secretary & Compliance Officer

13316 Points Posted on 16 May 2016

Originally posted by : Jatin Bajaj
	Yes, Company needs to obtain omnibus approval for related party by Audit Committee but before that approval of Board is Required. Omnibus approval shall be applicable to the transactions which are repititive in nature. Omnibus approval shall be applicable o the transaction not exceeding the value of more than 1 crore and shall be valid for a period of 1 year. After expiration of 1 year fresh approval is required.

Agree with the learned member.

For this the Board has to approve a Relatd Party Transaction Policy and according to which the Audit Comm. shall grant omnibus approval to the retitive RPT which will be valid for 1 year and Audit Comm. has to approve a fresh Omnibus Approval for new year as well.....