SEBI launches RPT portal to strengthen corporate governance and transparency

The Securities and Exchange Board of India (SEBI) on Friday, February 14, launched a dedicated Related Party Transaction (RPT) portal to enhance transparency and governance in corporate India.

This portal aims to bring greater transparency to corporate boardrooms, SEBI Whole Time Member Ashwani Bhatia said at its unveiling in Mumbai.

Comparing the initiative to sunlight that exposes hidden dealings, he emphasised its role in strengthening governance and ensuring fair play in corporate transactions.

SEBI introduced this portal as a strategic move to track and analyse RPTs, a critical area where governance lapses often occur.

Bhatia noted that while related party transactions can create synergies if handled properly, issues arise when they lack fairness in pricing or disproportionately benefit one party.

He stated that the portal would serve as a tool for mutual funds and other investors to demand better governance from the companies they invest in.

SEBI Chairperson Madhabi Puri Buch reiterated the regulator’s strong focus on RPTs, calling them a core governance concern.

She highlighted that SEBI operates on a disclosure-based regulatory framework, requiring listed companies to provide complete transparency about their financial dealings.

According to her, while promoters and investors generally share aligned interests, RPTs can sometimes create conflicts that require close scrutiny.

To further enhance oversight, SEBI plans to integrate supply chain data into the portal, allowing for a more comprehensive understanding of corporate transactions.

The launch of the RPT portal marks a significant step toward corporate accountability, ensuring that transactions are conducted fairly and transparently.

SEBI expects market participants to leverage the platform to reinforce governance norms and boost investor confidence.

ALSO READ | SEBI seeks greater access to social media records, source and memo say