Our experienced transfer pricing team assists listed entities, multinational corporations, and recognized stock exchanges in meeting the enhanced SEBI LODR Related Party Transaction (RPT) compliance requirements through services like comprehensive arm’s length analysis, benchmarking support, analyzing market or industry trends, analysing third-party quotations, where applicable. We ensure seamless alignment with the new three-tiered disclosure framework effective July 1, 2025, helping clients secure smooth approvals from Audit Committees, Boards, and shareholders, while proactively managing regulatory risks across sectors including listed subsidiaries.

Key Disclosure Requirements:

• As per new SEBI Circular, listed entities are required to provide three-tiered disclosure such as comprehensive, limited and minimum.
• The disclosure includes related party information, transaction details, certifications, third party quotations and documentation.

How KNAV can help in complying the above requirement as per New SEBI LODR Circular:

Compliance Assessment & Gap Analysis

Assessing existing RPTs policies and suggesting course correction to meet updated compliance standards.

Policy Advisory & Documentation Support

Assist in drafting or updating Related Party Transactions (RPT) policies and preparing required benchmarking that will assist the management to adhere to disclosures for Audit Committee and shareholder approvals, including mandatory certifications.

Arm’s Length Analysis:

• Holding discussions with the management to understand the nature and terms of intercompany / department transactions.
• Understanding the principles and the pricing methodology adopted
• Reading the agreements and other related documents maintained along with third party transactions to check internal comparable applicability, if any.
• Use an external database to conduct the arm’s length analysis.
• Provide a memorandum incorporating the findings of the search within the external database.

Guidance & Stakeholder Awareness

The management can place the ALP of RPTs report before the independent directors, audit committee, shareholder for smooth approval and seeking board resolution for RPTs.