Date: 2025-03-21Category: Not ApplicableState: Union GovernmentCountry: India
Industry Standards on “Minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction”
**Summary:**
SEBI Circular SEBIHOCFDCFDPoD2PCIR202537, dated March 21, 2025, addresses industry standards regarding minimum information requirements for audit committee and shareholder review and approval of related party transactions. This circular amends the implementation timeline of a previous SEBI Circular dated February 14, 2025. Based on stakeholder feedback, the effective date for mandatory compliance with these Industry Standards is extended from April 1, 2025, to July 1, 2025. The Industry Standards Forum (ISF), comprising representatives from ASSOCHAM, CII, and FICCI, will revise and simplify the Industry Standards, incorporating received feedback, to meet the revised timeline. Stock Exchanges are directed to inform their listed entities about this change. The circular is issued under Section 11(1) and 11A of the Securities and Exchange Board of India Act, 1992, read with regulation 101 of LODR Regulations. The circular is available on the SEBI website (www.sebi.gov.in) under Legal Circulars. For further information, contact Raj Kumar Das, Deputy General Manager, Corporation Finance Department, at Tel. No.: 91 22 2644 9253 or Email id: rajkdsebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India SEBI: Regulatory body for securities market in India, issuing the circular.
ASSOCHAM: The Associated Chambers of Commerce and Industry of India, an industry association.
FICCI: Federation of Indian Chambers of Commerce and Industry, an industry association.
CII: Confederation of Indian Industry, an industry association.
Industry Standards on Minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction: The subject of the circular, referring to industry standards for related party transactions.
Stock Exchanges: Recognized stock exchanges in India, instructed to disseminate the circular to listed entities.
Industry Standards Forum ISF: Forum comprising representatives from ASSOCHAM, CII, and FICCI, responsible for formulating the Industry Standards.
Securities and Exchange Board of India Act, 1992: The act under which the circular is issued.
CIRCULAR
SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/37 March 21, 2025
To,
All listed entities
All the recognized Stock Exchanges
The Associated Chambers of Commerce and Industry of India (ASSOCHAM)
Federation of Indian Chambers of Commerce and Industry (FICCI)
Confederation of Indian Industry (CII)
Dear Sir/Madam,
Sub: Industry Standards on “Minimum information to be provided for review of the
audit committee and shareholders for approval of a related party transaction”
1. SEBI Circular dated February 14, 2025 (link) (“the Circular”) required listed entities
to follow the Industry Standards on “Minimum information to be provided for review
of the audit committee and shareholders for approval of a related party transaction”
(“Industry Standards”) with effect from April 1, 2025.
2. SEBI has received feedback from various stakeholders requesting extension of
timeline for applicability of the Industry Standards. Accordingly, it has been decided
that the effective date of the Circular shall be July 1, 2025.
3. The Industry Standards Forum (“ISF”) comprising of representatives from three
industry associations, viz. ASSOCHAM, CII and FICCI, which had formulated the
Industry Standards, shall take into consideration the feedback received for
simplification of the Industry Standards and release the same in a time-bound
manner to meet the revised timelines.
4. The Stock Exchanges are advised to bring the contents of this Circular to the notice
of their listed entities.
5. This Circular is issued in exercise of the powers conferred under Section 11(1) and
11A of the Securities and Exchange Board of India Act, 1992 read with regulation
101 of LODR Regulations.
6. This Circular is available on SEBI website at www.sebi.gov.in under the category:
‘Legal → Circulars’.
Yours faithfully,
Raj Kumar Das
Deputy General Manager
Corporation Finance Department
Tel. No.: +91 22 2644 9253
Email id: rajkd@sebi.gov.in
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