Sebi Enhances Transparency in Related Party Transactions

The Securities and Exchange Board of India (Sebi) has introduced new industry standards for the disclosure of information related to related party transactions (RPTs) to be provided to the audit committee and shareholders. These standards, developed with industry associations, aim to promote a uniform approach for listed entities.

The Securities and Exchange Board of India (Sebi) has taken a significant step toward greater transparency in corporate governance. By introducing industry standards for related party transactions (RPTs), Sebi aims to ensure that listed entities provide thorough information to both the audit committee and shareholders.

In collaboration with the Industry Standards Forum (ISF) and industry associations like ASSOCHAM, CII, and FICCI, Sebi has formulated these standards. These guidelines, effective from April 1, will be available on various websites to help entities comply uniformly with disclosure requirements.

Furthermore, Sebi has launched a dedicated RPT portal to facilitate transparency and access to corporate governance data. This initiative allows all investors, not just institutional ones, to benefit from critical insights into related party transactions.