SEBI gives listed cos 3 more months to make minimum disclosures on related-party transactions

A SEBI circular announcing its release said, "In order to facilitate uniform approach and assist listed entities in complying with the above mentioned requirements, the Industry Standards Forum (“ISF”) comprising of representatives from three industry associations, viz. ASSOCHAM, CII and FICCI, under the aegis of the Stock Exchanges, has formulated industry standards, in consultation with SEBI, for minimum information to be provided for review of the audit committee and shareholders for approval of RPTs."

It added that the industry associations which are part of industry standards forum (ISF), which are ASSOCHAM, FICCI, and CII, and the stock exchanges would publish the industry standards on their websites.

A few hours before its official release, the former SEBI Chairperson Madhabi Puri Buch had shared at an event that the industry standards for minimum disclosures on RPTs would soon be out. The event was the launch of a platform that would track RPTs across listed entities along with proxy advisories' recommendations on how to vote on these RPTs.

"Governance is what drives trust in companies. Why emphasis on RPTs? It is our belief that in every decision made by its company, in almost every case, the objectives and interests of promoters and minority shareholders are aligned. The only place where there is a potential for divergence is RPTs," SEBI's Madhabi Puri said, stressing on the need for transparency around RPTs.