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SEBI Launches 'RPT Portal' to Enhance Corporate Governance and Transparency.

App and Web Portal | Dated: 17 Feb 2025

On February 14, 2025, the Securities and Exchange Board of India (SEBI) launched the 'Related Party Transaction (RPT) Portal,' India's first dedicated platform for monitoring and analyzing related party transactions (RPTs). The portal is designed to strengthen transparency and governance in corporate India.

🎯 Key Highlights:

  • - The platform allows various stakeholders to access standardized and comparable data on RPTs.
  • - A Related Party Transaction (RPT) refers to any transaction between related parties that involves the transfer of resources, services, or obligations, regardless of whether a price is charged.
  • - SEBI's newly launched 'Related Party Transaction (RPT) Portal' aims to enhance transparency and corporate governance in India by providing comprehensive and standardized data on RPTs. Key highlights include that executive compensation will now be covered under RPTs, allowing promoters to reward themselves without shareholder approval.

💡 Other Important Facts:

  • (i) The portal will compile detailed information on RPTs, including shareholding voting patterns from the last two years, helping investors and entities make informed decisions.
  • (ii) Managed by three proxy advisories—InGovern Research Services, Institutional Investor Advisory Services India, and Stakeholders Empowerment Services—the platform will bridge information gaps and enhance governance practices.
  • (iii) Additionally, SEBI has approved new RPT disclosure standards to ensure greater transparency and investor protection. These new standards will require listed companies to provide detailed information when seeking RPT approval from shareholders and audit committees.

📚 Test Your Knowledge:

Which of the following organizations launched the 'RPT Portal' to enhance corporate governance and transparency?

Correct Answer: SEBI

🚀 Quick Recap:

About Industry Standards Forum (ISF)

  • Chairman : Kundapur Vaman (K.V.) Kamath
  • Established : 2023