Electrum Portfolio Managers launches AIF–Laureate, a Sebi-registered Category III Alternative Investment Fund.

Arihant Capital Markets has launched AIF-Laureate, a Category III Alternative Investment Fund under its Electrum Portfolio Managers arm. The fund focuses on high-growth opportunities in small and mid-cap listed companies, providing investors with a long-term wealth creation avenue through a research-driven strategy. With a minimum investment threshold of Rs 1 crore, the fund is structured for long-term capital appreciation and recommended to be held for 3 to 5 years.

The Securities and Exchange Board of India (SEBI) has proposed significant changes to its related party transaction (RPT) norms, aiming to reduce the compliance burden for large firms. The proposed reforms, outlined in a consultation paper, include a scale-based threshold system that adjusts materiality thresholds based on a company's turnover [1].

Current RPT Rule

Under the current rule, listed companies must seek shareholder approval for any RPT over ₹1,000 crore or 10% of turnover, whichever is lower. This often triggers materiality and adds unnecessary compliance for companies [1].

SEBI’s Scale-Based Shift

SEBI has proposed a scale-based threshold system to address this issue. For companies with turnover up to ₹20,000 crore, the current threshold of 10% of consolidated annual turnover remains unchanged. For companies with turnover between ₹20,001 crore and ₹40,000 crore, the threshold is ₹2,000 crore plus 5% of the amount exceeding ₹20,000 crore. For firms above ₹40,000 crore turnover, the threshold is ₹3,000 crore plus 2.5% of the amount above ₹40,000 crore, subject to a maximum of ₹5,000 crore [1].

Subsidiary Deals Scrutinised

The proposed changes also include stricter scrutiny for subsidiary deals. Any RPT by a subsidiary exceeding ₹1 crore must get Audit Committee approval if it crosses either 10% of the subsidiary’s turnover or the parent’s new scale-based threshold, whichever is lower. If a subsidiary lacks full-year financials, the threshold would be compared against 10% of net worth or the parent’s threshold [1].

Revised RPT Validity

The consultation paper also proposes that omnibus approvals for RPTs given in an annual general meeting (AGM) stay valid until the next AGM, but not beyond 15 months. For other shareholder meetings, approval would remain valid for one year [1].

Clarity on Exemptions

SEBI has clarified that exemptions on retail purchases apply only to directors, key managerial personnel, or their relatives. It also specified that RPT exemptions for holding-subsidiary deals are meant only for listed holding companies [1].

Public Comments Invited

SEBI has invited public feedback on the proposed changes by 25 August 2025. Legal experts caution that the reforms must strike a balance between easing compliance and protecting minority shareholder rights [1].

Reference List:
[1] https://www.outlookbusiness.com/ampstories/markets/sebi-proposes-new-turnover-linked-related-party-transaction-reporting-normswhat-it-means-for-companies