SEBI Eases Compliance: A New Era for Market Regulations

The Securities and Exchange Board of India (SEBI) has announced pivotal regulatory changes aimed at simplifying compliance for related party transactions (RPTs). These adjustments are based on a threshold derived from the annual consolidated turnover of listed entities, intended to ease practical challenges and maintain investor protection.

Key changes include enhanced materiality thresholds for RPTs and a streamlined approval process for audit committees dealing with subsidiary transactions. These initiatives are expected to reduce the regulatory burden and focus on transactions of significant substance, providing relief to rapidly expanding corporate groups.

Additionally, SEBI has relaxed compliance standards for investment advisors and research analysts by allowing more flexible operational structures and easing registration processes. This move is part of a broader effort to foster a balanced environment that encourages both business growth and stringent investor safety.