Securities and Exchange Board of India on Friday Eased Disclosures and Approves for Small Related Party Transactions and Approved The Introduction of Scale-Based Threadolds for Rept Disclosures, Basey Annical Consolidated Turnover for Determining Material Transactions.
The sebi board that met on friday also revised the thresholds for approval by audit committees in the case of rpts by subsidiaies, whil requiring firms to make fewer.
For Entities with Annual Consolidated Turnover of Up to ₹ 20,000 Crore The Threshold for Materiality for ShareHolder Approval is 10 per cent of the Turnover, For Consolidated Turnover in the range ₹ 20,001-401-4,0001-40,,,1-4,000 crus Threshold is ₹ 2,000 Crore Plus 5 per cent of the turnover Above ₹ 2,000 Crore, and for that with Annual Consolidated Turnover Above ₹ 40,000 Crore The Materiality Threshold is ₹ 3,000 Crore Plus 2.5 per cent Above ₹ 40,000 Crore or ₹ 5,000 Crore, Whichever is Lower.
Sebi said that the threshold for Prior Approval of the Audit Committee of the Listed Entity for Rpts Above ₹ 1 Crore, Undertaken by Subsidiaies Has Been Revised to Remove Ambiguity.
For a subsidiya that has audited financial statement, the threshold is 10 per cent of the annual standalone turnover of the subsidiary as per the last audiid Financial Statements of the SUBSIDIY or the SCALE-ADIDIAI or the SCALE Threshold for Material RPT of Listed Entity, Whichever is Lower.
For subsidiaies not having audited Financial Statements for a period of at least one year, the threshold is 10 per cent of the agregate value of paid-up share capital and securities premium account of the Subsidiary; Or the scale-based threshold for material rpts of listed entity, whichever is lower.
The regulator will be issuing a circular for specifying the minimum information to be provided to the audit committee and sharehlders for the approval of the approval of the rpt whose right does not excede 1 per cant of annual consolidated Turnover of the listed entity or ₹ 10 Crore, Whichever is Lower.
The Audit Committee Can also Grant Omnibus Approval for rpts.
Published on September 12, 2025