SEBI to Ease Related Party Transaction Rules for Top 100 Listed Companies

The Securities and Exchange Board of India (SEBI) has proposed to relax related party transaction(RPT) norms for the top 100 listed entities by market capitalisation.

These companies can skip shareholder approval for RPTs if the transactions are with wholly-owned subsidiaries and are in the ordinary course of business at arm's length.

This move aims to ease compliance for large corporates while ensuring that governance standards remain intact. However, these transactions must still be disclosed to stock exchanges and reviewed by audit committees.

The move is part of SEBI’s broader push to reduce regulatory burden and boost ease of doing business without compromising governance standards.