Related Party Transaction Policy
Konark Finserv —
Related Party Transaction Policy
Konark Finserv is committed to maintaining high standards of transparency, integrity, and corporate governance in all business dealings. This Related Party Transaction Policy establishes the framework for identifying, reviewing, approving, and monitoring transactions involving related parties to ensure fairness, accountability, and regulatory compliance.
The policy aims to prevent conflicts of interest and ensure that related party transactions are conducted on an arm’s length basis and in the ordinary course of business wherever applicable.
1. Objectives of the Policy
Governance Standards
Promote ethical conduct and sound corporate governance practices.
Conflict Management
Identify and manage potential conflicts of interest.
Regulatory Compliance
Ensure compliance with applicable legal and regulatory requirements.
2. Scope of the Policy
This policy applies to all transactions and arrangements entered into by Konark Finserv with related parties, including subsidiaries, directors, key managerial personnel, promoters, relatives, and other entities covered under applicable laws.
- Transactions with directors and relatives
- Transactions involving promoters or group entities
- Contracts with key managerial personnel
- Financial and operational arrangements
- Loans, guarantees, or service agreements
3. Definition of Related Party
A “Related Party” shall have the meaning assigned under the Companies Act, applicable accounting standards, RBI guidelines, and other relevant laws.
Directors & KMPs
Directors and Key Managerial Personnel of the company.
Relatives
Immediate family members and specified relatives.
Associated Entities
Group companies, affiliates, and controlled entities.
4. Types of Related Party Transactions
Related party transactions may include:
- Purchase or sale of goods/services
- Leasing or property arrangements
- Loans, advances, or guarantees
- Professional or consultancy agreements
- Transfer of resources, services, or obligations
- Operational or financial support arrangements
5. Approval Mechanism
All related party transactions shall be subject to appropriate approval and review procedures depending on materiality and regulatory requirements.
Identification
Related party relationship and transaction identified.
Review
Commercial terms and conflict assessment conducted.
Approval
Necessary approvals obtained from competent authority.
Monitoring
Ongoing monitoring and compliance verification.
6. Arm’s Length Principle
Konark Finserv endeavors to ensure that related party transactions are conducted:
- On an arm’s length basis
- In the ordinary course of business
- At commercially reasonable terms
- Without undue benefit to related parties
7. Disclosure & Reporting
Appropriate disclosures regarding related party transactions shall be made in financial statements, board reports, or regulatory filings as required.
- Periodic reporting to management and board
- Disclosure in financial statements
- Regulatory reporting where applicable
- Maintenance of transaction records
8. Conflict of Interest Management
Individuals involved in a related party transaction shall disclose their interest and abstain from participating in decision-making where required.
Disclosure
Timely declaration of related party interests.
Non-Participation
Interested parties may recuse from approvals.
Independent Review
Fairness and commercial reasonability evaluated.
9. Record Maintenance
Konark Finserv shall maintain records and supporting documentation relating to related party transactions for regulatory, audit, and governance purposes.
- Approval documentation maintained securely
- Transaction records archived appropriately
- Audit trail and review logs preserved
10. Monitoring & Compliance
Compliance teams and management may periodically review related party transactions to ensure adherence to this policy and applicable regulations.
- Periodic internal reviews
- Audit observations and corrective measures
- Regulatory compliance assessments
- Governance reporting mechanisms
11. Policy Review & Amendments
This Related Party Transaction Policy may be reviewed periodically and updated based on:
- Changes in laws and regulations
- Corporate governance developments
- Operational or business requirements
- Audit and compliance recommendations
Strengthening Governance Through Transparency
Konark Finserv remains committed to ethical business practices, responsible governance, and transparent management of related party transactions in the interests of stakeholders and regulatory compliance.