Version 20 - June 2025 (CUD release)
Content update
- Financial period type: 12-Months (Annual)
- Target industry type: Manufacturing, Services, Generic (excluding Financial Services)
Legislative updates
Industry Standards on Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
As per the SEBI Circular dated 25 February 2025, in order to facilitate ease of doing business, the ISF has formulated industry standards, in consultation with SEBI, for the effective implementation of the requirement to disclose material events or information under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The listed entities need to follow this Standard to ensure compliance with the applicable disclosure requirements. Since no effective date has been prescribed, these requirements will apply immediately.
SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2025
SEBI has amended various regulations under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Amongst other changes, the key amendments include amendment in the definition of an associate, reporting of transactions of promoters, promoter group, and other pre-IPO transactions, and insertion of a new clause related to stock appreciation rights under employee stock schemes, etc.
Industry Standards on Key Performance Indicators (“KPIs”) Disclosures in the draft Offer Document and Offer Document (“KPI Standards”)
The SEBI has issued a Circular dated 28 February 2025, stating that the Industry Standards Forum (ISF) has formulated industry standards, in consultation with SEBI, for the effective implementation of the requirement to disclose KPIs in the draft offer document and offer document. The standards address key aspects, including the definition and classification of KPIs, the process for their identification, approval, and certification, as well as the indicative format for the presentation of KPIs. The standards are applicable for all draft offer documents/offer documents filed with SEBI/Stock Exchanges on or after 1 April 2025.
Guidelines on Hedging Through Equity Derivatives
The IRDAI has issued Guidelines on Hedging through Equity Derivatives under clause 13 of Schedule III of the IRDAI (Actuarial, Finance, and Investment Functions of Insurers) Regulations, 2024. As per the Guidelines, insurers are permitted to use equity derivatives for hedging their existing equity exposures, subject to compliance with these guidelines. Equity derivatives are permitted for insurers (i) to hedge against volatility in the equity market, (ii) to ensure the preservation of the market value of equity investments, and (iii) to reduce equity portfolio risk.
Industry Standards on “Minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction”
The SEBI had earlier issued a circular requiring listed entities to follow Industry Standard on “Minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction” with effect from 1 April 2025. Now, SEBI has issued a circular extending the effective date of this circular to 1 July 2025. In addition, the Industry Standards Forum has released a set of FAQs regarding the applicability date of these standards. Since these FAQs were published prior to the aforementioned circular, they carry reference to the original applicability date of 1 April 2025. Read more - NSE and BSE.
- In suppression of the earlier Circular/ Industry Standards on the same topic, the Industry Standards Forum, in consultation with the SEBI, has issued revisedIndustry Standards on Minimum information to be provided to the Audit Committee and Shareholders for approval of Related Party Transactions.The Standard prescribes minimum information to be provided to the Audit Committee and Shareholders for approval of RPTs.
- As per the SEBI Circular dated June 26, 2025, the revised Standard is applicable from 1 September 2025. This Circular also supersedes the earlier circulars (datedFebruary 14, 2025 and March 21, 2025) and the previously issued Industry Standard.
- The Corporate Reporting Services Team will issue further update on the new requirement in due course.
SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2025
SEBI has notified the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2025 to amend the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). Among other matters, the amendments include introduction of a separate chapter for corporate governance norms in the LODR Regulations, which will be applicable only to ‘high value debt listed entities’ (HVDLEs).
Change in criteria for identification of MSMEs
In accordance with the Announcement made by the Union Finance Minister Nirmala Sitharaman during her Budget Speech, the Central Government has now notified revised investment and turnover criteria for classification MSMEs. Given below changes made in the criteria:
Type | Investment in plant & machinery/equipment Amount in crores Pre-revised | Revised | Turnover Amount in crores Pre-revised | Revised |
|---|---|---|
Micro Enterprise | 1 | 2.5 | 5 | 10 |
Small Enterprise | 10 | 25 | 50 | 100 |
Medium Enterprise | 50 | 125 | 250 | 500 |
The revised criteria will come into force from the 1 April, 2025.
Reporting of overdue MSME payment to the Ministry of Corporate Affairs
The Central Government vide its notification dated 25 March 2025, has directed all companies who get supply of goods or services from micro and small enterprise suppliers and whose payments exceed forty five days from the date of acceptance/ acceptance of goods or services as per the MSME Act, to submit a half yearly return to the Ministry of Corporate Affairs stating the following:
- The amounts of payments due, and
- The reasons of the delay.
No separate date has been specified for application of this requirement.
Measures to facilitate ease of doing business with respect to framework for assurance or assessment, ESG disclosures for value chain, and introduction of voluntary disclosure on green credits
SEBI, on 18 December 2024, decided to revise various provisions regarding Environmental, Social, and Governance (ESG) disclosures for the value chain, provide an option to undertake ‘assessment’ or ‘assurance’ for Business Responsibility and Sustainability Reporting (BRSR) Core and ESG disclosures for value chain, and introduce disclosure on green credits. Accordingly, the provisions of LODR Regulations in this regard have been amended vide notification dated 28 March 2025. Further, through this circular, SEBI has carried out the partial modifications in the “Master circular for compliance with the provisions of the SEBI (LODR) Regulations, 2015 by listed entities”, dated 11 November 2024.
Income-tax (Eighth Amendment) Rules, 2025
The CBDT has issued the Income-tax (Eighth Amendment) Rules, 2025, which include several amendments to Form No. 3CD. These rules will come into effect on 1 April 2025.
Environment (Construction and Demolition) Waste Management Rules, 2025
The MoEFCC has notified the Environment (Construction and Demolition) Waste Management Rules, 2025, which apply to all construction, demolition, remodeling, renovation and repair activities. The rules outline measures for waste management, utilization and non-compliance, aiming to align with circular economy and resource efficiency principles. Key provisions include extended producer responsibility, environmental compensation and a centralized online monitoring system. These rules will come into effect on 1 April 2026.
Companies (Indian Accounting Standards) Amendment Rules, 2025
The MCA has notified the Companies (Indian Accounting Standards) Amendment Rules, 2025, which amend Ind AS 21, The Effects of Changes in Foreign Exchange Rates, to address situations where a currency lacks exchangeability. These amendments provide guidance on:
- How an entity should assess whether a currency is exchangeable into another currency
- Determining the spot exchange rate when exchangeability is lacking
Additionally, they introduce new disclosure requirements to help users understand the impact of a currency's lack of exchangeability on an entity’s financial performance, position and cash flows. The amendments are effective for annual reporting periods beginning on or after 1 April 2025. However, entities are not permitted to restate comparative information. Consequential amendments have also been made to Ind AS 101, "First-time Adoption of Indian Accounting Standards”. These amendments came into effect on the date of their publication in the Official Gazette, dated 07 May 2025.
SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) (Amendment) Regulations, 2025
SEBI has notified the SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) (Amendment) Regulations, 2025. These amendments address several key aspects, such as:
- Form and nature of Securitised Debt Instruments (SDIs): All SDIs and security receipts must be issued and transacted only in dematerialized (demat) form.
- Meaning of debt/ receivables: Definition of underlying assets eligible for securitization has been updated.
- Minimum retention requirement: The originator is required to retain a minimum of 10% of the book value of the debt or receivable being securitized.
- Trustee requirements: Only SEBI-registered debenture trustees are eligible to act as trustees in SDI transactions.
- Disclosure requirements: The originator must provide a certificate from its auditor regarding the disclosures of the underlying asset pool assigned to the securitization trust on a quarterly basis.
The amendments came into force on the date of their publication in the Official Gazette i.e., 5 May 2025.
Recent rules/draft rules on waste management and EPR
Sr. No. | Rules/ Draft Rules | Applicability date |
|---|---|---|
1 | Environment Protection (End-of-Life Vehicles) Rules, 2025 | 1 April 2025 |
2 | Draft Liquid Waste Management Rules, 2024 | 1 October 2025 |
3 | Draft Solid Waste Management Rules, 2024 | 1 October 2025 |
4 | Draft Environment Protection (Extended Producer Responsibility for Packaging made from paper, glass and metal as well as sanitary products) Rules, 2024 | 1 April 2026 |
The Government of India has been notifying rules dealing with the Extended Producer Responsibility (EPR) for recycling of various kinds of waste. In line with this, the Government has notified the Environment Protection (End-of-Life Vehicles) Rules, 2025 ( “ELV Rules” or “the Rules”), applicable from 1 April 2025. Salient features of these rules are:
- The Rules impose EPR/Recycling obligation on the vehicle producers — defined as entities engaged in manufacturing or assembling and selling vehicles under its own brand, selling branded vehicles made by others or importing vehicles.
- The Rules impose EPR obligations on producers for environmentally sound scrapping of steel used in vehicles at the end-of-life of vehicles introduced into the market, based on the average lifespan of various categories of vehicles as specified in the Rules.
- Rule 4(6) of ELV Rules specifically stipulates that if a producer ceases operations, it is still required to fulfil its EPR obligation for all vehicles introduced in the market up to the date of closure.
- Each producer must fulfil its EPR Obligation either through generation of EPR certificates at self-operated vehicle scrapping facility or through purchase from another entity having such Facility.
- The Central Board will fix the highest and lowest price for purchase and sale of EPR Certificates which will be equal to 100% and 30%, respectively, of the Environmental Compensation leviable on the obligated entities for non-fulfilment of EPR obligations.
- The Central Government may constitute a committee under the Chairpersonship of the Central Board for effective implementation of these rules.
Considering specific features of the ELV Rules and the requirements of Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, it appears that an entity impacted by these rules may need to create provision for EPR Obligation related to its past sales by charging the same to the statement of profit and loss. For entities preparing quarterly financial results, such provision may be required in the quarter ending June 2025.
Accounting considerations due to government interventions and tariffs
Various accounting considerations should be accounted for due to government interventions and tariffs. Issues like geopolitical instability and conflicts, fluctuation in commodity prices and forex rates, imports and exports restrictions, supply chain disruptions, higher refinancing costs and tariffs increase could lead to impacts on financial statements such as going concern, revenue recognition and measurement, impairment of assets, fair value measurement, onerous contracts, control/significant influence assessment, hyperinflationary economies, subsequent events, and estimation uncertainty disclosures. The companies should review the various impact on its business.
Rating of Municipal Bonds on the Expected Loss (EL)-Based Rating Scale
It has been decided that Credit Rating Agencies (CRAs) may, in addition to the standardized rating scale, extend the Expected Loss (EL)-Based Rating Scale for rating of Municipal Bonds that are issued to finance infrastructure assets. This circular shall be applicable with immediate effect i.e. 15 May 2025.
Format of Annual Secretarial Compliance Report
The ICSI has released an updated format for the Annual Secretarial Compliance Report. Listed entities are required to submit this report within 60 days from end of each financial year.
Extension of Due Date for filing ITRs for AY 2025-26
The Central Board of Direct Taxes (CBDT) has extended the due date for filing Income Tax Returns (ITRs) for Assessment Year 2025–26, originally due on 31st July 2025, to 15th September 2025, in view of the significant changes introduced in the notified ITRs and the time required for system readiness and rollout of ITR utilities. A formal notification to this effect is being issued separate.
Companies (Audit and Auditors) Amendment Rules, 2025
The MCA has notified the Companies (Audit and Auditors) Amendment Rules, 2025 whereby among other changes the revised formats for statutory forms - ADT-1 (auditor appointment), ADT-2 (auditor removal), ADT-3 (auditor resignation), and ADT-4 (fraud reporting). Key changes in ADT-4 include detailed descriptions of fraud (nature, modus operandi, period, detection, etc.), amount of losses, identification of involved persons, management's response and corrective actions, etc. Also, it is required that going forward, ADT-4 must be filed electronically. The earlier requirement to prepare and submit fraud reports on the auditor's letterhead has been specifically removed. The amendments shall come into force with effect from 14 July 2025.
Companies (Cost Records and Audit) Amendment Rules, 2025
The MCA has notified the Companies (Cost Records and Audit) Amendment Rules, 2025. The amendment revises Form CRA-2, which is used by companies to inform the central government about the appointment of a cost auditor.
Companies (Accounts) Second Amendment Rules, 2025
The MCA has notified the Companies (Accounts) Second Amendment Rules, 2025 whereby the requirement to submit Forms such as AOC-1 (Statement containing salient features of the financial statement of Subsidiaries/ associate companies/ joint ventures) and Form AOC-2 (Disclosure of related transactions) has been replaced with the requirements to submit e-Forms AOC-1 and AOC-2. The MCA has also notified revised Forms AOC-1, AOC-2, AOC-4 (Form for filing financial statement and other documents) and CSR-2 (Corporate Social Responsibility reporting).
Also, going forward, the Board report should include disclosures covering (i) details of complaints received, disposed of, and pending for the Sexual Harassment, and (ii) details of the company’s compliance with the Maternity Benefit Act, 1961.
It is also required that a copy of the signed financial statements duly authenticated as per section 134 of the Act (including Board‘s report, auditors‘ report and other documents) in portable document format will also be attached with the XBRL Forms.
The amendments will come into force with effect from 14 July 2025.
Companies (Management and Administration) Amendment Rules, 2025
The MCA has notified the Companies (Management and Administration) Amendment Rules, 2025 whereby the forms Nos MGT-7 (Annual Return (other than OPCs and Small Companies)), MGT-7A (Abridged Annual Return for OPCs and Small Companies) and MGT-15 (Form for filing Report on Annual General Meeting) have been substituted with the revised e-Forms of the same numbers. The amendments will come into force with effect from 14 July 2025.
Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Amendment Rules, 2025
The MCA has notified the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Amendment Rules, 2025, which substitute Form No. AOC-4 XBRL (form for filing XBRL document in respect of financial statement and other documents with the registrar) with the revised e-Form AOC-4 XBRL. Companies are also required to attach a copy of the signed financial statements (including Board’s report, auditors’ report, and other documents) in PDF format in e-Form AOC-4 XBRL. The amendments will come into force with effect from 14 July 2025.
Limited relaxation from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
SEBI had earlier relaxed the applicability of Regulation 58(1)(b) of the SEBI (LODR) Regulations, 2015, which mandates sending hard copies of statements containing the salient features of all documents specified in Section 136 of the Companies Act, 2013, to holders of non-convertible securities who have not registered their email addresses. This relaxation was applicable until 30 September 2024.
Following the MCA’s extension of a similar relaxation until 30 September 2025, SEBI, through a circular, has clarified that no penal action will be taken for non-compliance with Regulation 58(1)(b) during the period from 1 October 2024 to 5 June 2025, provided entities comply with the MCA circular. Furthermore, from 6 June 2025 to 30 September 2025, the relaxation shall continue, subject to the condition that entities include a web link to the statements and documents referred to in Section 136 of the Companies Act, 2013, in the advertisement issued under Regulation 52(8). The SEBI circular came into effect on 5 June 2025.
Is early adoption available for these accounting standards?
N/A
Related Content
-
India AS
Format:
Article,
1 min read