23 Nov 2025 | 5 Mins Read
Sebi introduces new framework for related party transaction materiality
Flipitmoney
Sebi introduces a threshold-based framework for RPTs based on annual consolidated turnover. Thresholds for approval by audit committees and disclosure requirements are revised for subsidiaries and smaller RPTs. Entities with turnover above Rs 40,000 crore have a Rs 5,000 crore upper ceiling for material RPTs. Simplified disclosures are allowed for RPTs below 1% of annual consolidated turnover.