IBC1 min read
Related Party
Under IBC, a related party of a corporate debtor includes directors, partners, subsidiaries, holding companies, and associates. Related party transactions are subject to scrutiny for preferential and undervalued dealings.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Related Party in Indian corporate law?▼
Under IBC, a related party of a corporate debtor includes directors, partners, subsidiaries, holding companies, and associates. Related party transactions are subject to scrutiny for preferential and undervalued dealings.
Q2. Why is Related Party important for compliance?▼
Related Party is governed by the Insolvency and Bankruptcy Code, 2016 and regulated by IBBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Related Party?▼
Related Party is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with IBC regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to IBC:
SEBI Consultation Paper on Investor Consent & Conflicted Transactions under AIF Regulations 2026
Published: 30 June 2026
IBBI Discussion Paper Proposes 13 Reforms to Real Estate Insolvency, 2026
Published: 30 June 2026
IBBI Valuation Guidelines 2026: Standardised Formats, Coordinating Valuer Framework & 23-Point Report Standard Under IBC
Published: 17 June 2026