Sebi to tighten rules on related-party transactions and disclosures

The Securities and Exchange Board of India (Sebi) is developing a more comprehensive framework to govern related-party transactions and enhance disclosure requirements for listed companies. The move comes as regulators seek to strengthen corporate governance standards and improve transparency in capital markets.

The regulatory clarification aims to address ambiguities in existing norms governing transactions between companies and their related parties, a significant area of corporate oversight. Enhanced disclosure requirements are expected to provide investors with clearer visibility into such transactions, helping them make more informed investment decisions.

Concurrently, the National Stock Exchange has intensified compliance pressure by reducing the timeframe within which brokers must take corrective action against non-compliant authorised persons operating under their licenses. This tightening reflects broader efforts to ensure stricter adherence to regulatory standards across market intermediaries.

The combined regulatory push represents Sebi's broader agenda to strengthen governance standards and market integrity, particularly as India's capital markets continue to expand. These measures are expected to influence how companies structure their transactions and report information to shareholders and regulators.