The Securities and Exchange Board of India (Sebi) is proposing new scale-based thresholds for related-party transactions (RPTs) to replace the current uniform Rs 1,000 crore materiality threshold. The aim is to better protect minority investors from 'tunnelling' while avoiding over-regulation of routine intra-group flows for large firms. The proposed rules introduce tiered thresholds based on company turnover, seeking a more proportionate framework. However, empirical evidence suggests caution is needed when implementing such changes, as RPTs can be both beneficial for business operations and a risk for shareholder wealth expropriation.