Description

Comprehensive FAQ addressing implementation and applicability of new RPT Industry Standards effective September 1, 2025.

Summary

BSE has issued comprehensive FAQs on the new RPT Industry Standards that replace previous related party transaction disclosure formats under LODR Regulations. The standards became effective September 1, 2025, and apply to all listed entities for audit committee and shareholder approvals of related party transactions.

Key Points

  • RPT Industry Standards replace all previous RPT disclosure formats under Section III-B of Master Circular
  • Standards specify minimum information requirements but allow additional disclosures
  • Apply to transactions between foreign subsidiaries of Indian listed companies
  • Holding companies can provide consolidated financial information for fellow subsidiaries
  • Part A applies to all related party transactions unless specifically exempted
  • Audit Committee can seek additional information beyond minimum requirements

Regulatory Changes

  • New RPT Industry Standards effective from September 1, 2025
  • Replaces disclosure requirements in Section III-B of Master Circular dated November 11, 2024
  • LODR Regulations and SEBI Circulars will prevail in case of inconsistencies
  • Applies to both direct transactions and subsidiary transactions requiring parent company approval

Compliance Requirements

  • Listed entities must use new RPT Industry Standards format for all related party transaction disclosures
  • Management must provide minimum prescribed information to Audit Committee and shareholders
  • Additional information may be provided in interest of public shareholders
  • Holding companies must provide duly certified summary of financial information for subsidiaries
  • Standards apply to cumulative transactions exceeding threshold limits

Important Dates

  • Effective Date: September 1, 2025
  • Reference Circular: SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/93 dated June 26, 2025

Impact Assessment

  • High Impact: All listed entities must update their RPT disclosure processes and formats
  • Compliance Risk: Non-compliance with new standards may result in regulatory action
  • Operational Impact: Companies need to review and update internal processes for RPT approvals
  • Subsidiary Impact: Foreign subsidiaries and fellow subsidiary transactions now explicitly covered
  • Audit Committee Role: Enhanced scrutiny capability with rights to seek additional information

Impact Justification

New industry standards replacing existing RPT disclosure formats affecting all listed entities