Procedure for omnibus approval for related parties transaction

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.

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.....