Arm’s Length Basis definition

Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so there is no conflict of interest.
Arm’s Length Basis means a transaction between two Persons that is carried out on terms no less favorable than the terms on which the transaction would be carried out by unrelated or unaffiliated Persons, acting as a willing buyer and a willing seller, and each acting in his own self-interest.
Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest. For determination of Arm’s Length basis, guidance may be taken from provisions of Transfer Pricing under Income Tax Act, 1961.

Examples of Arm’s Length Basis in a sentence

  • However, the Audit Committee may grant prior omnibus approval for Related Party Transactions which are repetitive in nature and are in the ordinary course of business and satisfy the Arm’s Length basis, subject to the compliance of conditions contained in Clause 49 of the Listing Agreement.

  • All the Transactions, other than the Material Related Party Transactions, with the Related Parties which are not in the ordinary course of business or at Arm’s Length basis shall also require the approval of the shareholders through special resolution, if so, required under any law and the Related Party/ies with whom transaction is to be entered into shall abstain from voting on such resolution.


More Definitions of Arm’s Length Basis

Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest.
Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so there is no conflict of interest. For determining of Arm’s length basis, guidance may be taken from the provisions of Transfer Pricing under the Income Tax Act, 1961.
Arm’s Length Basis. As to any transaction, agreement or other arrangement, being on terms that would be reached by unrelated parties not under any compulsion to contract.
Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest. [Explanation (b) to Section 188(1) of the Act].
Arm’s Length Basis means basis and principles followed for conduct of transactions between two un-related parties, with no conflict of interest.
Arm’s Length Basis means, with respect to any transaction, such transaction is conducted in the ordinary course of business at prices and on terms and conditions not less favorable to the Borrower and its Restricted Subsidiaries than could be obtained on an arms-length basis from unaffiliated third parties.
Arm’s Length Basis means fair and reasonable terms that are consistent with market practice and which have been agreed in comparable transactions between parties which are independent and Related Parties of, or otherwise affiliated with, each other under comparable circumstances;