This week in Indian law: SEBI lowered the Related Party Transaction disclosure threshold under LODR regulations, enhancing transparency requirements for listed entities. The Supreme Court's Constitution Bench continued hearing arguments in the same-sex marriage matter, with judgment expected to be reserved soon. 1 significant legal development this week in securities-market.
Top story
SEBI LODR Amendments: RPT Disclosure Threshold Lowered to 10%
Category: securities-market | Date: 22 May 2023 | Source: SEBI
SEBI amended the LODR (Listing Obligations and Disclosure Requirements) Regulations to lower the Related Party Transaction (RPT) disclosure threshold to 10 per cent of consolidated annual revenue. The amendment requires listed entities to obtain prior approval of the audit committee and shareholders for all material RPTs exceeding this threshold. The reduced threshold captures a significantly larger number of transactions that were previously below the disclosure radar.
Why it matters: Corporate governance teams at listed companies must immediately review and enhance their RPT identification, monitoring, and approval frameworks to comply with the lower threshold. Board and audit committee processes will need significant strengthening.
Read more: Veritect analysis
Also this week
- Same-sex marriage hearings continue — SC Constitution Bench hears final arguments; judgment expected to be reserved in the coming days.
- NN Global hearing upcoming — SC five-judge bench scheduled to hear case on validity of unstamped arbitration agreements.
- No major regulatory developments — RBI and MCA in routine operations; SEBI focus on LODR compliance.
Looking ahead
- April 25: SC five-judge bench to deliver NN Global judgment on unstamped arbitration agreements.
- Late April: NCLAT orders on CoC commercial wisdom expected.
- May 1: SC Constitution Bench expected to deliver Article 142 divorce judgment (Shilpa Sailesh).
This is the Veritect Weekly Legal Roundup for Week 16 of 2023. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.