SEBI Eases Disclosure Norms For Related Party Transactions

The Securities and Exchange Board of India (SEBI) issued a circular easing disclosure norms for Related Party Transactions (RPTs) to simplify approvals while maintaining investor safeguards. The circular is effective immediately.

Listed companies seeking RPT approval from audit committees and shareholders now face reduced information requirements.

Companies are not required to disclose transactions under Rs 1 crore, but those under 1% of consolidated turnover or Rs 10 crore must provide simplified information. Companies must still provide details such as the type, terms, related party, relationship, financial interest, tenure, and transaction value to enable informed review. Loans, advances, and investments require additional information on the source of funds, cost, tenure, and purpose. The move follows representations from the Industry Standards Forum and the Advisory Committee on Listing Obligations and Disclosure Requirements.