SEBI has issued Industry Standards on “Minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction. The listed entity shall provide the audit committee with the information as specified in the Industry Standards on Minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction while placing any proposal for review and approval of an RPT.
The notice being sent to the shareholders seeking approval for any RPT shall, in addition to the requirements under the Companies Act, 2013, include the information as part of the explanatory statement as specified in the Industry Standards on Minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction.
This circular shall come into effect from April 1, 2025.
