NEW DELHI: Markets regulator Sebi on Saturday introduced industry standards for the minimum information that listed entities are need to provide to the audit committee and shareholders when seeking approval for the related-party transactions.
The Industry Standards Forum (ISF) comprising representatives from three industry associations -- ASSOCHAM, CII and FICCI -- have formulated these standards for minimum information to be provided for review of the audit committee and shareholders for approval of related party transactions in consultation with Sebi under the aegis of the stock exchanges.
The industry associations and stock exchanges will publish these standards on their websites to facilitate a uniform approach and assist listed entities in complying with the requirements, the Securities and Exchange Board of India (Sebi) said in a circular on Friday.
The new disclosure requirements will come into effect from April 1, it added.
Under Sebi’s LODR (Listing Obligations and Disclosure Requirements) rules, related party transactions (RPTs) require approval by the audit committee and from the shareholders as well, if material.