This week in Indian law: SEBI's amended LODR provisions on Related Party Transaction disclosure thresholds became effective, requiring all listed entities to comply with the lower 10 per cent revenue threshold. The Supreme Court wound down ahead of summer vacation following a historically productive May. 1 significant legal development this week in securities-market.
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SEBI LODR RPT Disclosure Threshold Now Effective
Category: securities-market | Date: 22 May 2023 | Source: SEBI
The SEBI LODR amendments lowering the Related Party Transaction (RPT) disclosure and approval threshold to 10 per cent of consolidated annual revenue are now effective. All listed entities must obtain prior approval of the audit committee and, where applicable, shareholders for material RPTs exceeding this threshold. Companies that have not yet updated their RPT identification and monitoring frameworks must do so immediately.
Why it matters: The lower threshold captures significantly more transactions, requiring enhanced governance infrastructure for RPT oversight. Non-compliance risks SEBI enforcement action and adverse audit observations.
Read more: Veritect analysis
Also this week
- SC summer vacation approaches — Supreme Court activity minimal as the Court prepares to close for summer recess. No landmark judgments delivered.
- Post-verdict analysis — The legal community continues analysing the blockbuster May verdicts: Maharashtra political crisis, Delhi governance, Jallikattu, and Article 142 divorce.
- Delhi Ordinance debate — Constitutional scholars and opposition parties challenge the Centre's Ordinance overriding the SC verdict; constitutional validity to be tested.
- No significant regulatory developments — RBI and MCA in routine operations; no major circulars issued.
Looking ahead
- Late May - July: Supreme Court summer vacation. Regulatory news and legislative developments to dominate.
- June 6: MeitY IT Rules amendment on government fact-check unit expected to generate controversy.
- June 8: RBI MPC meeting — second consecutive rate pause expected.
- July: Supreme Court to resume; Parliament Monsoon session begins.
This is the Veritect Weekly Legal Roundup for Week 21 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.