Under Section 188 of Companies Act, related party transactions done on arm's length basis, are exempted from the compliances under Section 188. If we look at SEBI LODR Regulations, 2015, it is silent on arm's length principle. Further, the definition of related party transactions under LODR Regulations, mentions "whether price is charged or not".
My question is: Is arm's length principle an exception to related party transactions under LODR Regulations? (If it is, approvals would not required to be taken for such RPTs under LODR Regulations).
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