New Delhi, Aug. 4 -- The Securities and Exchange Board of India (Sebi) on Monday proposed sweeping changes to its related party transaction (RPT) regime, sharpening its focus on ease of doing business for large companies.

The capital markets regulator's consultation paper recommends a significant overhaul of materiality thresholds, potentially cutting compliance hurdles by nearly 60% for the nation's top listed firms.

The consultation paper, released for public comment, sets out a "scale-based threshold mechanism" to determine when RPTs are considered material and must be placed before shareholders for approval.

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Currently, listed companies must seek shareholder...