SEBI Launched ‘RPT Portal’ to Strengthen Corporate Governance and Transparency

Current Context: The Securities and Exchange Board of India (SEBI) launched the Related Party Transaction (RPT) Portal on February 14, 2025. 

• This portal is designed to enhance corporate governance and transparency within companies.

Here's what you need to know about it:

• Purpose: The RPT Portal aims to track and analyze related party transactions, which are transactions between the company and its related parties, ensuring that they are conducted fairly and transparently.
• Transparency: The portal provides standardized and comparable data on RPTs, making it easier for investors and stakeholders to access important information.
• Democratization: SEBI Whole Time Member Ashwani Bhatia emphasized that the portal will democratize access to crucial information, thereby encouraging higher standards of corporate governance.
• Usage: Companies will be required to report their related party transactions through this portal, which will then be available for public scrutiny.

Question:

1. What is the main objective of the RPT Portal?

a) To track and analyze related party transactions
b) To monitor insider trading activities
c) To regulate foreign investments in India
d) To manage mutual fund transactions

Answer:a) The RPT Portal is designed to track and analyze related party transactions (RPTs), ensuring that such transactions are fair and transparent.