SEBI introduces new framework for related party transactions
pre-market1 source ↓written by the desknot a recommendation
- will be deemed
- 10% of annual turnover
Markets regulator SEBI has implemented a threshold-based framework to assess the materiality of related party transactions (RPTs). For entities with turnover up to ₹20,000 cr, transactions exceeding 10% of annual turnover will be deemed material. This aims to enhance clarity and balance investor protection with business ease under LODR norms.
• Revised thresholds for audit committee approvals
• Simplified disclosure for smaller transactions
• New norms effective from 18 Nov 2023
Not investment advice. For informational purposes only.