SEBI Mandates Revised Disclosure Standards for Related Party Transactions

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Jul 29, 2025

SEBI Mandates Revised Disclosure Standards for Related Party Transactions

SEBI, by way of a Circular dated February 14, 2025, had mandated the implementation of industry standards (‘Industry Standards’) on the minimum information to be provided to audit committees and shareholders for the approval of related party transactions.

While initially mandated to be effective from April 1, 2025, the implementation timeline of the Industry Standards was extended to July 1, 2025, by way of SEBI Circular dated March 21, 2025. After considering industry feedback, SEBI has, pursuant to a Circular dated June 26, 2025, extended the implementation timeline to September 1, 2025.

The Circular dated June 26, 2025, also directs stock exchanges and industry associations to publish the Industry Standards, issue FAQs, and guide listed entities on compliance.

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