The Securities and Exchange Commission has informed Sinhaputhra Finance to make a disclosure on the newly formed Related Party Transactions Review Committee (RPTRC) to minimise information asymmetry.
Before establishing the related Party Transaction Review Committee (RPTRC), all transactions including Related Party transactions are monitored by the Integrated Risk Management Committee (IRMC).
IRMC has12 members and the senior management meetings are held on a quarterly basis. There were no non recurrent or recurrent related party transactions that exceeded the respective thresholds mentioned in the Listing Rules of the Colombo Stock Exchange since January 1,2016.
Sinhaputhra has now established a related party transactions review committee to provide an independent review, approval and oversight of all proposed related party transactions.
The committee will introduce a related party transaction policy which includes guidelines for recognizing, approving and reporting of such transactions to minimise conflict of interest.
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