Reliance Industries to put related party transactions up for vote

Following the changes in rules and regulations put forth by the Securities Exchange Board of India (SEBI), the country’s most valuable company Reliance Industries (RIL) will seek approval for all of its related party transactions (RPTs). The company will seek approvals for upcoming RPTs from shareholders in the coming annual shareholders’ meeting next week on 29 August. RIL will look for approval on RPTs set to happen in FY23, and the subsequent four years all the way up to FY27. SEBI had introduced new rules that required companies to get approval from shareholders for all RPTs that either exceed Rs 1,000 crore in value or 10 percent of the consolidated annual turnover of the company. The new regulation came into force on April 1, 2022. RIL’s biggest RPTs were with subsidiaries Reliance Jio Infocomm and Reliance Retail. The transactions amounted to Rs. 1.05 lakh crore in FY22, or just under 15 percent of RIL’s annual consolidated turnover for the previous fiscal year. The new RPTs between RIL and  Reliance Jio Infocomm and Reliance Retail will be voted on during the shareholder’s meeting. Other RPTs that will also come up for approval are RIL’s deal with Reliance BP Mobility (RBML), where RIL controls a 51 percent controlling stake. RIL has estimated sales from RBML to soar to Rs. 68,300 crore in FY23. Another RPT up for vote will be with Reliance Sibur Elastomers, where RIL holds a 74.5 percent stake. The estimated transactions between the two for FY23 is at Rs. 2,600 crore. Another large RPT is with Jamnagar Utilities & Power, which is supplying electricity, steam and water to RIL’s refineries in the massive Jamnagar Complex for a cost of Rs. 5,200 crore for the next five years. Other RPTs include Sikka Ports & Terminals, and RPTs between RIL subsidiaries themselves like Reliance Retail and Reliance International, RJio and Reliance Retail, Jio Platforms And Reliance Retail, Reliance Retail Ventures and Reliance Brands, and Reliance Projects and Property Management Services. Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd that publishes Firstpost  Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook , Twitter and Instagram .