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Friends, Family, & SEBI

The Morning Brief

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Related Party Transactions Are Not Abusive Most of the Time

related party transactions in themselves are not abusive most of the times. They may be deemed abusive only in cases where they enrich overall, directly or indirectly, the dominant or promoter shareholders. Thet se accompanied as an i po to raise money for a particular objective. Thereafter, through related party loans, transactions, et cetera, money is transferred to certain private entities, which are controlled by promoters.

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