Archive · 19 Sep 2025

Sebi Introduces Scale-Based Approach for Related Party Transactions

Sebi Introduces Scale-Based Approach for Related Party Transactions

Sebi, India's market regulator, has changed how it looks at deals between a company and related parties.

Instead of a fixed limit, the rules now consider a company's size.

This means big companies have higher limits before needing extra scrutiny, while smaller ones stay under stricter rules.

Auditors will have clearer guidelines, and investors get more relevant information.

It's meant to make things easier for businesses and clearer for investors, signaling India's commitment to global standards.

Sources