Sebi Proposes Turnover-Based RPT Thresholds

Stakeholders Said the ₹1,000 Crore Threshold Promotes a One-Size-Fits-All Approach for All Listed Entities

- PTI

Markets regulator Sebi on Monday proposed a threshold-based framework to determine the materiality of related party transactions (RPTs), based on the annual consolidated turnover of the listed entity.

For entities with turnover up to ₹20,000 crore, a transaction will be considered material if it exceeds 10% of the annual consolidated turnover, the Securities and Exchange Board of India (Sebi) said in its consultation paper.

In the case of entities with turnover between ₹20,001 crore and ₹40,000 crore, the threshold should be ₹2,000 crore plus 5% of the turnover exceeding ₹20,000 crore.