SEBI Eases Disclosure Norms for Smaller Related Party Transactions
India's Securities and Exchange Board (SEBI) introduced revised guidelines Monday, mandating enhanced disclosures for related party transactions (RPTs) while providing relief for smaller deals. Listed companies must now furnish detailed justifications to audit committees, including transaction rationale, valuation reports, and counterparty revenue impact assessments.
The new framework requires shareholder communications to summarize audit committee disclosures, demonstrate transaction benefits, and provide access to supporting documents. SEBI's circular takes immediate effect, though transactions below 1% of annual turnover or ₹10 crore receive simplified reporting requirements.