SEBI's New RPT Rules: A Game Changer for Compliance
The Securities and Exchange Board of India (SEBI) has proposed changes to the rules for related-party transactions (RPTs), which have been positively received by the industry. The new scale-based threshold aims to simplify compliance, especially for companies with lower turnovers. The updated thresholds will reduce the paperwork and help audit committees focus on significant transactions, improving efficiency. However, experts caution that vigilance is necessary to prevent companies from fragmenting larger transactions into smaller ones to evade the rules. Overall, SEBI's reforms strive to balance investor protection with ease of business operations.
