SEBI Relaxes Minimum Information Requirements For Related Party Transactions

SEBI, by way of a Circular dated October 13, 2025, has eased the minimum information that listed entities are required to provide their audit committee and shareholders for approval of Related Party Transactions ('RPTs'), by introducing materiality-based thresholds:

i. where value of an RPT, individually or together with previous transactions in a financial year (including transactions which are approved by way of ratification), does not exceed one per cent of the listed entity's annual consolidated turnover or INR 100 million (approx. USD 1.10 million) (whichever is lower), the Circular prescribes a truncated list of disclosures to the audit committee and shareholders. These include, inter alia, type of transaction, its material terms, name of the related party, tenure of the RPT, etc.;