SEBI relaxes disclosure requirements for Related Party Transactions

The Securities and Exchange Board of India (“SEBI”) has issued a circular modifying the Master Circular for compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Regulations”) in relation to minimum information to be provided to the Audit Committee and shareholders for approval of Related Party Transactions (“RPTs”). The Circular is effective immediately from its date of issuance, i.e., 13^th October 2025.

Previously, listed entities were required to furnish detailed information as per the Industry Standards on RPT disclosures, irrespective of the transaction size. The new circular aims to ease compliance requirements for smaller transactions and promote ease of doing business.

Key Highlights:

1. Listed entities are now permitted to provide simplified information (as prescribed in Annexure 13A of the Circular) to the Audit Committee and shareholders for approval of RPTs, where the transaction value individually or together with previous transactions during a financial year does not exceed 1% of the annual consolidated turnover or Rs. 10 crore, whichever is lower.
2. The above disclosure requirements will not apply to RPTs whose cumulative value during a financial year does not exceed Rs. 1 crore.
3. The exemption threshold of Rs. 1 crore under Para 3(c) of the Industry Standards on RPTs will continue to remain applicable.

The circular is linked below for your ease of reference.

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Source: Securities and Exchange Board of India