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SEBI has introduced new rules for the disclosure of approvals related to transactions with related parties.

Banking & Finance | Dated: 19 Feb 2025

In February 2025, SEBI (Securities and Exchange Board of India), the market regulator based in Mumbai (Maharashtra), introduced new industry standards. These standards require listed companies to provide essential information to the audit committee and shareholders when seeking approval for Related Party Transactions (RPT).

🎯 Key Highlights:

  • - The new disclosure rule will be effective from April 1, 2025.
  • - SEBI issued these new standards through a circular, using the powers granted under Section 11 (1) and 11A of the SEBI Act, 1992, along with regulation 101 of LODR (Listing Obligations and Disclosure Requirements) Regulations.

💡 Other Important Facts:

  • (i) Under the new rules, SEBI has made it mandatory for listed companies to provide the audit committee with the required information, as specified in the new standards, when submitting any proposal for the review and approval of an RPT.
  • (ii) SEBI also announced that it has relaxed the timeline for Alternative Investment Funds (AIFs) to hold investments in dematerialized (demat) form.
  • (iii) All provisions of SEBI's circular have come into effect immediately.

📚 Test Your Knowledge:

Which regulatory body has recently introduced new rules for the disclosure of approvals related to transactions with related parties?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

  • Chairperson : Madhabi Puri Buch
  • Headquarter : Mumbai