SEBI, through Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/37, dated March 21, 2025, has extended the deadline for the Industry Standards on the minimum information required for the review of the audit committee and shareholders for approval of related party transactions. The key clarifications are summarized below:

1. SEBI Circular dated February 14, 2025: Listed entities are required to follow the Industry Standards on “Minimum information to be provided for the audit committee and shareholders’ approval of related party transactions” from April 1, 2025.
2. Timeline Extension: After receiving feedback from stakeholders, SEBI has decided to extend the effective date to July 1, 2025, for the applicability of these Industry Standards.
3. Industry Standards Forum (‘ISF’): The ISF, consisting of The Associated Chambers of Commerce and Industry of India (‘ASSOCHAM’), Confederation of Indian Industry (‘CII’), and Federation of Indian Chambers of Commerce and Industry (‘FICCI’), will review feedback to simplify the standards and ensure timely release to meet the new timeline.
4. Stock Exchanges Notice: Stock exchanges have been directed to notify their listed entities about the revised timeline.

KNAV Comments:

Listed entities are required to comply with the revised effective date of July 1, 2025, for the applicability of the Industry Standards on related party transactions. It is imperative for listed entities to stay informed of further updates from SEBI and the ISF, particularly regarding any simplifications to the Industry Standards. Ensuring adherence to these revised timelines will be crucial for maintaining compliance with regulatory requirements and facilitating effective governance processes related to related party transactions.