Bridge over ocean
11 August 2022 Multimedia

What’s Yours is Mine and What’s Mine is Mine: Harmful Related Party Transactions and How to Mitigate Them

  1. Ashwini Damani, CFA
  2. Sumeet Jain
  3. Godfrey Mwanza, CFA
  4. Sivananth Ramachandran, CFA, CIPM

Related party transactions (RPTs) may be beneficial for companies in many ways, from realizing synergies through vertical or horizontal integration within their group, reducing transactional costs, and improving enforcement of contractual rights. However, globally, the potential to abuse RPTs is viewed as an important policy issue even though they are seldom banned. CFA Institute believes investor protection and market integrity are key components to a sound and robust economic development and has recently published a report in the subject. What's Yours is Yours and What's Mine is Mine is an examination of non compliant related party transactions on the Lusaka Securities Exchange and a proposal to mitigate this harm.

In this webinar, we will discuss the experiences of two emerging markets, Zambia and India, on the topic of RPTs. Our experts will discuss the mechanics of abusive related party transactions, and the harm it imposes on the minority shareholders and the wider economy. They will also discuss the reforms in the RPT regulations and the way forward.

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