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Excessive Related Party Dealing a red flag?
short by / on Saturday, 24 May, 2025
Frequent or high-value RPTs often indicate that management may be serving personal interests. If a company buys supplies from a promoter's firm, it could mean unfair pricing or quality for personal gain over shareholder interest. Weak disclosures, vague terms, or recurring deals with promoter-owned firms are early signs of potential misuse.
read more at Finology