Financial Disclosure

The Securities and Exchange Board of India (SEBI) has launched a Related Party Transaction (RPT) portal to strengthen corporate governance and increase transparency in boardroom dealings. At the launch event, SEBI Whole Time Member Ashwani Bhatia likened the initiative to sunlight exposing hidden dealings, emphasizing its role in ensuring fair corporate transactions. RPTs, while capable of creating synergies, often face scrutiny due to unfair pricing and potential conflicts of interest. The portal will enable mutual funds and investors to track such transactions and demand better governance from companies. SEBI Chairperson Madhabi Puri Buch reaffirmed the regulator’s strong focus on RPTs, calling them a core governance concern. SEBI’s disclosure-based framework mandates that listed companies provide complete transparency in financial dealings to prevent unfair advantages. Looking ahead, SEBI plans to integrate supply chain data into the portal for a more comprehensive oversight of corporate transactions. The RPT portal is expected to boost investor confidence, reinforce corporate accountability, and ensure fair play in India’s financial markets. Source: CNBC