Street signs: Sebi to bring out clearer RPT and disclosure framework

Sebi is looking to clarify related-party transaction and disclosure norms, while NSE has tightened timelines for brokers to act on non-compliant authorised persons

Sebi to bring out clearer RPT, disclosure norms

 

The Securities and Exchange Board of India (Sebi) plans to clarify its framework governing related-party transactions to make compliance requirements clearer and more workable for issuers while retaining investor safeguards, its chairman hinted at the changes in a recent address.

 

The regulator is also reviewing the framework for monitoring and disclosure of utilisation of issue proceeds, with an aim to improve timely disclosures and streamline compliance.

 

Separately, Sebi may also propose a framework to avoid duplication of fines imposed by multiple exchanges on entities listed on more than one exchange for the same matter. The changes are aimed at making regulation more efficient while reducing avoidable compliance burdens.

 

Tighter timelines for brokers to act on APs

 

The National Stock Exchange (NSE) has tightened timelines for stock brokers to act against authorised persons (APs) for non-compliances identified during inspections. APs are agents of stock brokers providing access to clients.

 

Brokers will have to take disciplinary action within two months from the quarter-end and submit an action-taken report within three months. However, where termination is prescribed as the disciplinary action, members must act within seven days of receiving the inspection report or identifying the non-compliance.

 

The revised timelines will apply to AP inspection reports from the July-September 2026 quarter onwards, NSE said in a circular. Two weeks earlier, the exchanges had proposed an overhaul of the AP framework to strengthen investor protection.

 

Coinvestments surge for PMS in July

 

Coinvestment assets under management (AUM) in portfolio management services (PMS) picked up pace in July, rising 10.2 per cent month-on-month (M-o-M) to ₹6,743 crore, the highest monthly growth this year.

 

Apart from April, which recorded 4.3 per cent M-o-M growth, all other months in 2026 have seen monthly growth of below 2 per cent.

 

Coinvestment allows PMS clients to invest alongside the manager in specific investment opportunities, rather than only through the broader portfolio.

 

The jump was led by unlisted plain debt, whose AUM surged 36.9 per cent during the month. Unlisted equity, the largest component of the segment with a 44 per cent share, grew 2.3 per cent.