&w=3840&q=100)
Sebi plans to ease RPT rules for large firms, cutting shareholder approvals
premium
Listen to This Article
In a major overhaul of the related party transaction (RPT) norms, the Securities and Exchange Board of India (Sebi) has proposed linking thresholds for the materiality of such transactions to the turnover of the listed company — a move expected to benefit larger firms more.
The proposed changes could reduce the number of RPTs requiring shareholders' approval by approximately 60% for the top 100 listed companies, according to a back-test conducted by the securities regulator.
Under the current regulations, an RPT is considered material if the transaction exceeds Rs 1,000 crore or 10% of the annual consolidated turnover of the
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
18 minutes ago
- Economic Times
SEBI proposes measures to expand resident Indian participation in FPIs
Key proposals Live Events Retail Schemes in IFSCs: The proposal suggests enabling retail schemes based in International Financial Services Centres (IFSCs) in India, with resident Indian non-individuals acting as sponsors or managers, to register as FPIs. These schemes would be aligned with existing investment regulations for better clarity and accessibility. Alignment of Contribution Limits: SEBI proposes to align the contribution limits for resident Indian non-individuals with the IFSCA (Fund Management) Regulations, 2025. This move would harmonize the contribution thresholds for various types of funds operating within IFSCs, including venture capital, restricted schemes, and retail schemes. Indian Mutual Funds as Constituents of FPIs: The proposal seeks to allow Indian mutual funds to become constituents of FPIs, enabling them to invest in overseas mutual funds or unit trusts with exposure to Indian securities. This is intended to streamline the investment process and enhance the transparency of such investments. Background The consultation process: (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In an attempt to facilitate greater participation from resident Indians in the foreign portfolio investment landscape, the Securities and Exchange Board of India ( SEBI ) has released a consultation paper outlining several key proposals aimed at increasing the involvement of Indian investors in FPIs These proposals are designed to create a more inclusive investment environment, particularly for Indian non-individuals and mutual funds, allowing them to play a more significant role in international investment proposed measures focus on expanding the scope of Foreign Portfolio Investment (FPI) participation by resident Indians through a series of regulatory changes. SEBI's move is expected to pave the way for a broader range of investment options and offer Indian investors increased opportunities to diversify their portfolios consultation paper invites public feedback on these suggestions, which could have a substantial impact on the investment under the SEBI Foreign Portfolio Investors (FPI) Regulations, 2019, resident Indians, including non-resident Indians (NRIs) and overseas citizens of India (OCIs), are restricted from directly registering as these individuals are allowed to be constituents of FPIs, subject to specific conditions on contribution limits and control within the funds. For resident Indian non-individuals, participation in FPIs is permitted if they meet certain criteria, including the type of funds they manage or sponsor and the contribution limits for specific categories of consultation paper comes at a time when the government is looking to enhance the role of IFSCs in India's financial sector, with an eye on attracting more global capital. By proposing to widen the scope for resident Indian participation , SEBI aims to make the FPI route more accessible for a broader range of investors, including mutual funds, which could significantly diversify their foreign proposals also reflect an effort to bring Indian financial regulations in line with international standards while fostering a more dynamic and globally connected investment public has been invited to submit comments on these proposals by August 29, 2025, through the SEBI website. SEBI's move to open up the process for public input underscores the importance of stakeholder feedback in shaping policies that affect both retail and institutional consultation process will likely influence the final regulatory framework and could signal a shift towards more liberalized foreign investment rules for Indian the introduction of these measures, the Indian investment community is poised to see significant changes that could reshape the way FPIs operate within India, offering new avenues for growth and diversification in the global markets.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
18 minutes ago
- Economic Times
Parag Parikh Flexi Cap Fund increases stake in ITC and 11 other stocks in July
Parag Parikh Flexi Cap Fund strategically increased its holdings in ITC and eleven other stocks during July. Parag Parikh Flexi Cap Fund, the largest active fund and flexi cap fund, increased its stake in ITC and 11 other stocks in the month of July. The fund added around 47.50 lakh shares of ITC taking the total number of shares to 12.21 crore in July against 11.74 crore in June. The other stocks added in the portfolio included Axis Bank, Bharti Airtel, Cipla, Dr. Reddy's Laboratories, EID Parry India, HCL Technologies, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Power Grid Corporation of India, Zydus Lifesciences. Also Read | Raksha Bandhan: Could a mutual fund SIP gift today secure your sibling's future? It added around 65.70 lakh shares of Power Grid Corporation of India, followed by 31.16 lakh shares of ICICI flexi cap fund reduced its stake from IPCA Laboratories and sold 7.45 lakh shares of this stock from the portfolio. Only one new stock was added in the portfolio in the said period. Motilal Oswal Financial Services was the new entrant in the portfolio and around 5.91 lakh shares were added to the portfolio. The fund did not make a complete exit from any stock in the mentioned time period. Exposure in nearly 15 stocks remained unchanged in July which includes Bajaj Holdings & Investment, Balkrishna Industries, CDSL, Coal India, Indian Energy Exchange, Infosys, Mahindra & Mahindra, MCX, Swaraj Engines, and Zydus Wellness. Parag Parikh Flexi Cap Fund is an open-ended dynamic Equity scheme investing across large cap, mid cap, small cap investment objective of the fund is to seek to generate long-term capital growth from an actively managed portfolio primarily of Equity and Equity Related Securities. The scheme shall invest in Indian equities, foreign equities and related instruments and debt securities. Launched on May 24, 2013, the fund had an AUM of Rs 1.13 lakh crore as on July 31, flexi cap fund is benchmarked against NIFTY 500 (TRI) and is managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, and Mansi Kariya. Also Read | Over 50 mutual fund SIPs give negative returns in 1 year. Should you pause, redeem, or continue? According to the monthly release by the fund house, the core portfolio consists of equity investments made with a long term outlook and the factors considered while investing are quality of management, quality of the sector and the business (return on capital, entry barriers, capital intensity, use of debt, growth prospects etc) and the valuation of the companies. The endeavor of the fund management team is to identify opportunities for long term investments.'We continue to look at individual investments on their own merits and will not hesitate to invest if an opportunity looks attractive. As usual, our investment stance does not depend much on the macro-economic situation but is focussed on individual companies. We have about 23.29% in cash holdings, debt & money market instruments and arbitrage positions which can be deployed in long term investments at appropriate levels,' the fund house said.
News18
18 minutes ago
- News18
India's Defence Production Soars to Record High of ₹1.5 Lakh Crore in 2024-2025
India's Defence Production Soars to Record High of ₹1.5 Lakh Crore in 2024-2025 | Defence Budget Last Updated: Breaking News Videos India's defense production has reached a record high of Rs 1,50,590 crores for FY 2024-2025, marking an 18% growth from the previous year and a staggering 90% increase since 2019-2020. This reflects the success of the Aatmanir Bharta initiative in the defense sector. n18oc_breaking-newsNews18 Mobile App -
