SEBI Issues Standardised RPT Framework – Effective 13 October 2025
The Securities and Exchange Board of India (SEBI) has introduced a Standardised Related Party Transaction (RPT) Framework, effective 13 October 2025, to improve transparency and uniformity in the approval and disclosure of related party transactions by listed companies.
Applicability
1) The framework applies to all listed entities.
2) Audit Committee: Approval is required for all RPTs.
3) Shareholders: Approval is required only for transactions that cross the prescribed materiality thresholds.
Relaxation Thresholds
1) Transactions up to Rs 1 crore: Remain exempt from the minimum information disclosure requirements.
2) Transactions between Rs 1 crore and Rs 10 crore (or 1% of annual consolidated turnover, whichever is lower): Classified as moderate-value RPTs and now require a simplified disclosure format (Annexure-13A) for approval by the Audit Committee and shareholders.
3) Transactions above Rs 10 crore (or 1% of annual consolidated turnover): Must continue to comply with the comprehensive disclosure rules under the full Industry Standards on Minimum Information.
Purpose
-The framework seeks to reduce the compliance burden for routine, lower-value transactions while maintaining strong oversight for significant RPTs.
-It provides clarity on disclosure levels, streamlines review processes, and strengthens corporate governance across India’s listed entities.
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