SEBI's new RPT rules: What do they mean for investors
SEBI just changed how companies handle Related Party Transactions (RPTs), moving from a fixed limit to a turnover-based system.
Announced on September 12, 2024, these new rules are designed to protect minority shareholders and make life easier for bigger companies and their subsidiaries, all while keeping things transparent.
What's the bottom line?
This update means that only really significant deals—those over 10% of a company's turnover (with special caps for the largest firms)—need extra scrutiny.
That helps cut red tape for big players but still keeps checks in place where it matters.
Plus, SEBI has relaxed some rules for investment advisors and analysts, making it simpler to join the market.
Overall, these changes aim to boost trust, open up more investment options, and make India's markets clearer and friendlier for everyone.