SEBI Widens Promoter Disclosure Net to In-Laws and Linked Firms

2 October 20251 min read

Why in the news

SEBI clarified that promoter-related disclosures by listed companies extend to in-laws and the firms linked to them.

Covered relatives: spouse’s parents and married children’s spouses with their parents.
Covered entities: those where such relatives hold over 20%, or have beneficial interest or control.

An RPT is a deal between a company and its promoters, directors, relatives or entities they control; it must be disclosed.

1. Under SEBI's clarification on promoter disclosures, relatives' entities must be reported if relatives hold more than what shareholding?

Entities where the relatives hold over 20% are covered.

2. Which relatives of promoters did SEBI's clarification bring into disclosures by listed companies?

The notes list the spouse's parents and the spouses of married children plus their parents.

3. What loophole was SEBI's in-law disclosure move meant to plug?

Some promoters route funds through in-laws or linked entities to avoid RPT scrutiny.

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