The Securities Exchange Board of India (SEBI) on February 14, 2025, issued a notification regarding the Industry Standards on Minimum information to be provided for review by the audit committee and shareholders for approval of a related party transaction.
SEBI has introduced industry standards for the minimum information to be provided for the audit committee and shareholder approval of Related Party Transactions (RPTs) under Regulation 23(2), (3), and (4) of SEBI (LODR) Regulations, 2015. These standards, formulated by the Industry Standards Forum (ISF) with representatives from ASSOCHAM, CII, and FICCI, will be published on their websites and those of stock exchanges.
Listed entities must follow these industry standards to comply with Part A and Part B of Section III-B of SEBI’s Master Circular. Modifications include requiring audit committees and shareholder notices to include the specified information while reviewing and approving RPTs. This circular will be effective from April 1, 2025, and stock exchanges must ensure compliance.
[Notification No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/18]
