SEBI’s recent guidance may broaden the definition of related party transactions (RPT) to include deals between subsidiaries of listed companies and their related parties, requiring shareholder approval if materiality thresholds are breached. This could complicate compliance for unlisted subsidiaries and affect joint venture operations. Experts recommend aligning RPT regulations with the Companies Act for better clarity.
State Bank of India (SBI) is being cautious in lending to non-banking financial companies (NBFCs) due to interconnected credit risks and recent regulatory concerns. SBI’s corporate loan portfolio, worth Rs 11 lakh crore, will focus on renewables and real estate, expecting growth rates of 15-16%.
The bank is selectively lending to quality developers and exploring opportunities in solar projects, especially rooftop installations. SBI is also funding thermal power projects and emission-reduction technologies, recognizing the continued importance of thermal energy alongside renewables.
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