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.