Enhancing Transparency in Related Party Transactions with SEBI's New RPT Portal

SEBI’s RPT Portal: A New Era of Transparency and Oversight in Related Party Transactions

Introduction

In a move aimed at bolstering market transparency and strengthening corporate governance, the Securities and Exchange Board of India (SEBI) has launched a dedicated portal for Related Party Transactions (RPTs). Introduced on February 14, the platform is intended to serve as a central hub for enhancing the quality of disclosures, sharpening oversight by audit committees, and empowering investors to make better-informed decisions around potentially sensitive corporate dealings.

A Tool for Deeper Scrutiny and Sectoral Benchmarking

Peer-Based Comparisons for Better Governance

One of the portal’s standout features is its ability to help audit committees and management teams benchmark their own RPT disclosures against those of listed peers in similar industries. By offering visibility into how comparable companies structure and report their related party dealings, the platform encourages a higher standard of accountability across the board.

This comparative insight is especially valuable when reviewing new RPT proposals, allowing boards and committees to weigh their decisions not just against internal policies but also prevailing sector norms. In doing so, the portal helps reinforce consistency, contextual understanding, and good governance practices.

Centralised Proxy Advisor Opinions: A Window into Market Sentiment

Aggregated Advisory Views

Another key feature is the portal’s consolidation of proxy advisory firm recommendations on RPT proposals. By bringing these perspectives into a single, accessible platform, SEBI has created a space where investors and corporate decision-makers can see how independent analysts view specific transactions—whether they raise red flags, are deemed fair, or require further clarification.

For public shareholders, this means a clearer window into how governance professionals are interpreting the intent and impact of related party transactions—a critical advantage when preparing to vote on such proposals.

Reinforcing Shareholder Rights and Regulatory Safeguards

SEBI’s introduction of the RPT portal also reflects its continued focus on protecting the interests of minority investors—particularly in cases where transactions involve potential conflicts of interest. As per existing regulations, material RPTs must receive approval from non-promoter shareholders, and the presence of transparent, accessible information is central to that process.

By providing both peer disclosures and professional commentary, the portal equips public investors with the tools they need to assess transactions on their own terms—without solely relying on company narratives.

Elevating the Role of Proxy Advisors

An Independent Check on Insider Transactions

Over the past decade, proxy advisory firms have played an increasingly critical role in guiding institutional investors through complex governance questions. Their views on RPTs—especially in large or opaque group structures—often influence how key shareholders vote, particularly when public approval is required.

SEBI, through this initiative, has tacitly acknowledged the value these firms bring to the ecosystem—not only as watchdogs but as contributors to a more informed, participative governance framework.

A Platform That Encourages Learning and Collaboration

Driving Better Governance Through Shared Knowledge

Beyond its compliance function, the RPT portal also serves as a tool for continuous improvement. Boards, compliance officers, and even institutional shareholders can use the platform to observe evolving trends, adjust their internal practices, and adopt disclosure strategies that reflect both regulatory expectations and best-in-class standards.

It encourages a more collaborative approach—where management, boards, investors, and proxy firms engage in a shared commitment to transparency, rather than operate in silos.

Conclusion

SEBI’s launch of the RPT portal marks a significant milestone in India’s capital market reforms. By bringing together peer disclosures and proxy advisor insights in one transparent platform, the regulator is arming key stakeholders with the tools to evaluate related party transactions more rigorously and fairly.

As governance standards continue to rise, this initiative reflects a forward-looking approach—where better information, broader engagement, and stronger oversight converge to protect shareholders and preserve the credibility of India’s listed companies.