SEBI Eases RPT Rules for Companies in India
SEBI is set to revise rules on related party transactions (RPTs) to ease compliance for companies. The proposed scale-based thresholds will adjust according to a company’s turnover, making it simpler for firms to categorize transactions as material. For firms with a turnover up to ₹20,000 crore, the threshold is suggested at 10% of turnover, while for those above ₹40,000 crore, a maximum of ₹5,000 crore or 2.5% of the excess turnover will apply. This adjustment is expected to reduce the number of transactions needing shareholder approval by 60%, thus benefiting minority shareholders and enhancing business efficiency.
