This article examines the SAT order’s interpretation of the RPT framework with respect to materiality assessment, and delineates regulatory implications for industry stakeholders.

The Linde Judgement is a major step towards a more substance oriented and shareholder centric RPTs regime in India.

The recent amendments by SEBI in the LODR aligns with the effort to maintain the governance standards in response to changing realities of the market.

The consultation paper shifts the regulations from a rigid uniformity towards proportional oversight.

SEBI’s consultation paper provides a forward-looking approach to ease compliance, maintain uniform standards, and reduce redundant disclosure norms within which the RPTs operate.

Legal teams and corporate secretaries should therefore start reviewing RPT policies now, for instance, updating internal RPT registers, arm’s-length procedures, and disclosure checklists to reflect the new regime.

While SEBI’s reforms mark a significant advance, their true impact will depend on whether they lead to substantive improvements in governance or result in mere procedural compliance.

Introducing an exception for transactions in the ordinary course of business would be in the best interest of listed companies.