SEBI notifies stricter norms for Related Party Transactions Click here to read our

detailed analysis.
Applicable from Apr 01, 2022 (certain provisions from Apr 01, 2023)

Related parties (RPs) will now include Related Party Transactions (RPTs)
Promoter or Anyone with 20% or more holding, directly or Include following transactions Exclude following transactions
promoter group, indirectly (on a beneficial basis under Sec. 89 of • Listed entity & its RP; • Preferential allotment as per ICDR Regulations,
irrespective of CA, 2013); • Listed entity & RP of subsidiary; 2018
shareholding
(w.e.f. Apr 1, 2023, this will be reduced to 10%) • Subsidiary & its RP; • Corporate Actions (dividend, subdivision,
• Subsidiary & RP of listed entity; consolidation, rights & bonus issue, buyback)
Chronology of events w.e.f. Apr 01, 2023:
• For banks / NBFCs – acceptance of deposits
(on T&C as offered to public; subject to half
• Listed entity & any other person/entity yearly disclosures)
• Subsidiary & any other person/ entity
Jan 27, Report of the Working Group Purpose and effect is to benefit a RP of Prior approval of AC of listed entity for RPT
on Related Party
2020 Transactions
the listed entity/ subsidiary. between subsidiary & RP of listed entity with
value exceeding 10% of consolidated turnover of
RPT disclosures:
listed entity. Additionally w.e.f Apr 01, 2023, 10%
• Within 15 days from publication of half-
yearly FR (alongwith FS w.e.f Apr 01, 2023) of the standalone turnover of subsidiary.
Approval for amendments in • For HVDLE: Along with half yearly FR (‘comply or explain’ basis till March 31, 2023).
Sept 28, RPT framework in SEBI Board
2021 Meeting based on Report of • Sch.V Para A: RPT disclosure now applicable to entities with listed NCS.
the Working Group Disclose loans to firms/companies in which directors are interested. N.A. to banks.

Prior approval of SH for

Materiality Lower of:
Rs. 1000 crore;
material RPTs and
10% of annual consolidated turnover of the
Amendment in RPT of RPT listed entity modifications therein
Nov 09, framework notified vide SEBI Two fellow wholly-owned subsidiaries
2021 (LODR) (6th Amendment) Listed subsidiary & its RP/RP of listed entity Exemption to
Regulations, 2021 transactions between
Unlisted subsidiary of a listed subsidiary & its RP/RP of listed entity