The Securities and Exchange Commission (SEC) is aiming to release a set of draft rules on Related Party Transactions (RPT) for public discussion by mid 2013, officials said.
“We reviewed the comments that we received on the RPT consultation paper that was put out a few months ago,” a SEC official told the Business Times. He said that based on these comments, SEC has drafted the rules and that these rules are currently being discussed internally. He said that this paper is based on the OECD publication on ‘Related Party Transactions and Minority Shareholder Rights’ in 2012.
This publication has said that around the world, the potential to abuse related party transactions covering both equity and non-equity transactions are viewed as an important policy issue.