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SEBI Launches RPT Portal, Sets New Disclosure Standards for Listed Companies

In a key regulatory push toward greater corporate transparency, the Securities and Exchange Board of India (SEBI) on Friday launched a dedicated Related Party Transactions (RPT) portal. This move aims to improve visibility into governance practices among listed companies and strengthen investor confidence in board-level decision-making.

Raising the Bar for Governance Disclosures

SEBI’s latest initiative goes beyond digital convenience. It introduces a set of industry-aligned disclosure standards for related party transactions—often viewed as a grey area in corporate governance. These standards were formulated by the Industry Standards Forum (ISF), a collaborative body that includes representatives from CII, ASSOCHAM, and FICCI, working in close coordination with SEBI and the stock exchanges.

From April 1, listed companies will be required to adhere to these standards when seeking approval from audit committees and shareholders for material related party transactions.

What the New Standards Require

For Audit Committees

Companies must now furnish detailed, standardised information to their audit committees before seeking clearance for an RPT. This ensures that committees are equipped with consistent, comparable data to make informed decisions.

For Shareholder Approvals

The explanatory statements sent to shareholders as part of RPT approval notices must also reflect the new disclosures. These are in addition to the requirements already laid out in the Companies Act, 2013, providing a more complete picture to shareholders before they vote.

These updated norms are embedded within the SEBI (Listing Obligations and Disclosure Requirements) Regulations, and are expected to set a uniform benchmark for all listed entities.

Role of Stock Exchanges

SEBI has directed all stock exchanges to circulate the new circular to listed entities, ensuring companies are fully aware of their revised responsibilities ahead of the April 1 compliance date.

The industry associations and exchanges will also publish the new disclosure standards on their respective websites to further promote accessibility and uniform application.

A Portal for Transparency and Oversight

Unveiled alongside the disclosure framework, SEBI’s new RPT portal serves a dual purpose:

Investor Empowerment: Retail and institutional investors alike will now be able to access key governance data related to related party transactions in a structured, timely manner.
Regulatory Surveillance: For SEBI, the portal offers a more streamlined mechanism to track and analyse RPTs across companies—a move that enhances its oversight capabilities in an area historically prone to opacity.

Ashwani Bhatia, SEBI’s whole-time member, noted that the portal will “democratise access to governance information,” allowing even small investors to scrutinise and participate in matters often restricted to insiders.

Why This Matters

Related party transactions—especially in promoter-driven or family-owned companies—have often attracted regulatory attention for potential conflicts of interest. By insisting on deeper, standardised disclosures and making them easily accessible to all stakeholders, SEBI is reinforcing its commitment to board accountability and market fairness.

Conclusion

With the launch of the RPT portal and the rollout of industry-wide disclosure norms, SEBI has sent a clear signal: corporate transparency is no longer optional. Listed entities must now embrace not only the letter of the law but also its spirit—by equipping their boards and shareholders with the right information, and ensuring governance processes are beyond reproach.

As the April 1 deadline approaches, companies have a brief window to align with the new expectations—both in documentation and disclosure conduct. For investors, it’s a step toward greater clarity and control in how companies manage insider-linked decisions.