SEBI has issued circular mandating disclosure requirements to be placed by listed entities before the audit committee and shareholders for consideration of related party transactions (RPTs). The provisions will apply to entities that have listed specified securities on a recognised stock exchange. As per the circular, a listed entity will have to justify as to why the RPT is in its interest, besides, a copy of the valuation or other external party report will have to be submitted to the audit committee as well as shareholders for approval. In addition, a listed entity will have to place information on the percentage of the counter-party's annual consolidated turnover that is represented by the value of the proposed RPT voluntarily to the audit committee and shareholders. The listed entity will have to make RPT disclosures every six months in the prescribed format with effect from April 1, 2022.