The Securities and Ex-change Board of India (Sebi) has re-vised rules on related party transac-tions (RPT). Under the proposed changes, the management of a com-pany will have to provide a certifica-te from the chief executive officer or whole-time director and chief fi-nancial officer to the audit commit-tee confirming that the terms of RPTs proposed to be entered into are in the interest of the listed com-pany. Earlier promoters were also required to give the certificate but now it has been done away with.
Further, under the minimum in-formation to be provided to the sha-reholders for approval of material
RPTs, the company management will have to provide a copy of the va-luation report from external party.
The regulator said, companies wo-uld have to provide web link and QR code, through which shareholders can access the valuation report or other reports of exter-nal party considered by audit committee while approving the RPT.
Sebihas also eased the requirement for peer comparison in royalty payment-related disclosu-res. The new rule would become ef-fective from September 1, 2025. The proposed changes have been made in consultation with industry stan-dards forum after concerns were ra-ised on over-regulation and compli-ance burden.