Minimum information to be provided to the Audit Committee and Shareholders for approval of Related Party Transactions
The Securities and Exchange Board of India (SEBI) issued a circular on October 13, 2025 providing relaxation in the minimum information requirements to be submitted to the Audit Committee and shareholders for approval of Related Party Transactions (RPTs) by listed entities under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The circular modifies provisions of the SEBI Master Circular and introduces threshold-based disclosure requirements to facilitate ease of doing business. Where the value of a related party transaction does not exceed 1% of the annual consolidated turnover of the listed entity or Rs. 10 crore (whichever is lower), entities may provide simplified information in the prescribed format under Annexure-13A. Further, transactions not exceeding Rs. 1 crore are exempted from these disclosure requirements. The circular also prescribes the minimum details that must be placed before the Audit Committee and shareholders—such as transaction terms, value, tenure, relationship with the related party, and justification—to ensure transparency and informed decision-making in the approval of RPTs.
