Statutory Meaning & Definition
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.
Frequently Asked Questions (FAQs)
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.
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.
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 Circulars
Recent analysis and regulatory updates related to IBC:
SEBI Consultation Paper on Investor Consent & Conflicted Transactions under AIF Regulations 2026
Published: 30 June 2026
Subhash Chandra Personal Insolvency: ₹22,006 Crore Claims, ₹6.5 Crore Repayment Plan and the Related-Party Voting Question — Explained
Published: 3 November 2026
IBBI CIRP Circulars 109 and 110 of 2026: New Form CA for Homebuyers and RERA Disclosure Rules for Real Estate Insolvency
Published: 31 October 2026
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