The Securities and Exchange Board of India’s revised framework for disclosures related to related party transactions (RPT) has received mixed response from legal and governance professionals. While the updated rules are seen as a step towards greater transparency, experts have raised questions over its legal basis and pointed to additional compliance complexity and administrative burden it could involve. The new disclosure regime was notified through a circular on 26 June and will be effective from 1 September. Under Regulation 23 of Sebi’s Listing Obligations and Disclosure Requirements (LODR), listed companies must obtain approval from their audit committees—and in case of material transactions, from shareholders as well—for related party transactions. Sebi has now introduced a tiered format of disclosures under three categories: Part A covers all transactions; Part B applies to seven defined types, including loans and guarantees; and Part C mandates additional disclosures for material transactions. “The revised RPT Industry Standards, though aimed at improving transparency, raise important legal and structural concerns,” said Akshaya Bhansali, partner at Mindspright Legal, questioning the legal tenability of Sebi’s new framework. “They overlay the existing frameworks under the Companies Act and Sebi’s LODR with additional disclosure formats and a flat ₹1 crore threshold that are not grounded in statutory text,” Bhansali added. “This creates a regulatory layering that risks confusion over which standard prevails in case of inconsistency.” Bhansali also flagged a departure from regulatory convention. “The risk here is that substantive obligations are being introduced through a circular, without the procedural safeguards required under Sebi’s own 2025 regulation-making process,” she said, referring to the role played by industry associations in drafting the norms. The new disclosure regime was developed in consultation with the Industry Standards Forum comprising the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Confederation of Indian Industry (CII), and Federation of Indian Chambers of Commerce and Industry (FICCI).Key TakeawaysSebi’s new disclosure rules on related party transactions (RPTs) aim to improve transparency by mandating detailed, tiered disclosures for audit committees and shareholders—including price justification, past dealings, and management certification. Legal and compliance experts have raised concerns about the rules’ statutory basis, arguing that Sebi’s use of a circular—rather than formal regulation—introduces legal uncertainty and adds to the regulatory burden for companies. While the rules are seen as investor-friendly, especially for minority shareholders, they may increase workload for audit committees and top executives, prompting calls for better compensation and deeper business understanding among governa in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.